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Potential for class-action pay lawsuit could be lurking in your food delivery fees

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in Compensation and Benefits,Employment Law,Human Resources

There may be a class-action lawsuit lurking in your delivery charges if you automatically tack on extra fees for delivering pizza or other food directly to homes or businesses and that money doesn’t go straight to the delivery drivers.

That’s because Minnesota’s Fair Labor Standards Act has a provision that says such charges are tips—un­­less you clearly state that they are not.

Here’s what the law says: A gratuity is a “monetary contribution received directly or indirectly by an employee from a guest, patron or customer for services rendered and includes an obligatory charge assessed customers, guest or patron which might reasonably be construed by the customer, guest or patron as being payment for personal serv­ices rendered by an employee and for which no clear and conspicuous notice is given by the employer to the customer, guest or patron that the charge is not the property of the employee.”

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