Reseña de Mechmet v. Four Seasons Hotels Ltd.

Mechmet v. Four Seasons Hotels Ltd. de United States Court of Appeals for the Seventh Circuit Resumen del Libro

POSNER, Circuit Judge. The overtime provisions of the Fair Labor Standards Act entitle an hourly worker who works more than 40 hours a week to be paid at the rate of 1.5 times his normal wage for each hour over 40. See 29 U.S.C. § 207(a)(1). However, the provisions do not apply to employees of ""a retail or service establishment"" if the employee's regular rate of pay is more than 1.5 times the minimum wage and if ""more than half his compensation for a representative period (not less than one month) represents commissions on goods or services."" 29 U.S.C. § 207(i). The main question in this appeal from the dismissal of a complaint, 639 F. Supp. 330 (N.D. Ill. 1986), charging violations of (among other things) the overtime provisions is whether the percentage service charges that hotels and restaurants characteristically add to the bill for a banquet, to compensate banquet waiters over and above their regular hourly wage, are ""commissions on goods or services""; if they are, the overtime provisions are inapplicable. The question is one of first impression, and potentially one of first importance to the hotel and restaurant industry. That it has not arisen before may be due to the fact that although the exception for commissions dates back to a 1961 amendment to the Fair Labor Standards Act, hotels and restaurants have been subject to the overtime provisions of the Act only since 1975, and fully subject only since 1979.

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