Hyatt Settles Tipped Worker 401(k) Suit for Nearly $1.5 Million

Hyatt Corp. will pay $1.475 million to settle litigation claiming its policy of forcing tipped workers to receive tips in cash interferes with their ability to save for retirement under the company 401(k) plan.

The class settlement is expected to benefit more than 900 Hyatt workers in California, Illinois, and New York who participated in the company’s retirement plan and who received credit card tips outside of their regular paychecks since March 2016. Current plan participants will receive a credit to their account that corresponds to their missed opportunities to defer retirement income, while former plan participants will receive their ...