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Employment ComplianceOct 28, 202605:00 (PT)

Chili's tipped workers in New York allege harassment under 'customer comes first' culture

Key points

  • In a New York case, Chili's workers allege reliance on customer tips is linked to sexual and racial harassment
  • They argue the tipping model is structurally connected to discriminatory working conditions
  • Employment lawyer Michael Paglialonga called the theory novel and untested and said it is being closely monitored

In a New York case, Chili's tipped workers allege that reliance on customer tips is linked to sexual and racial harassment, arguing it is structurally connected to discriminatory working conditions. Employment lawyer Michael Paglialonga called the theory novel and untested and said it is being closely monitored. The allegations have not been proven.

Policy details

Jurisdiction
New York State
Status
Enforcement action
Effective date
—
Official source
Official source pending
Original report: Littler Mendelson P.C. ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.