Hyatt, Tipped Workers Plan to Settle 401(k) Contribution Lawsuit

Hyatt Corp. agreed to settle a proposed class action 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.

Judge Dale S. Fischer on Tuesday ordered that the case remain on pause after receiving word from the parties that they’d executed a settlement agreement and were having it reviewed by an independent fiduciary. Fischer instructed the parties to file an update on their progress by May 30.

The 2022 lawsuit by Hyatt server Lance Baird accuses the hotel chain of failing to properly honor his ...