ALBANY, N.Y. (AP) — Attorney General Eric Schneiderman has
reached an agreement with the online food delivery company GrubHub Inc.
to ensure that the tips it collects from customers will be given to the
workers they were intended for.
Schneiderman said Wednesday the
investigation into GrubHub, which merged with Seamless last year, found
that the company charged a fee to restaurants based on the total food,
drink, tax and tip. Once the fee was deducted, the remainder was
returned to the restaurant.
Schneiderman said that under state
labor law, employers are prohibited from keeping portions of an
employee’s tip and the fee created an incentive for restaurants to not
pay workers their full tips.
GrubHub says it is working closely with Schneiderman to ensure their policies comply with the labor laws.

Copyright 2014 The Associated Press. All rights
reserved. This material may not be published, broadcast, rewritten or
redistributed.
ALBANY, N.Y. (AP) — Attorney General Eric Schneiderman has
reached an agreement with the online food delivery company GrubHub Inc.
to ensure that the tips it collects from customers will be given to the
workers they were intended for.
Schneiderman said Wednesday the
investigation into GrubHub, which merged with Seamless last year, found
that the company charged a fee to restaurants based on the total food,
drink, tax and tip. Once the fee was deducted, the remainder was
returned to the restaurant.
Schneiderman said that under state
labor law, employers are prohibited from keeping portions of an
employee’s tip and the fee created an incentive for restaurants to not
pay workers their full tips.
GrubHub says it is working closely with Schneiderman to ensure their policies comply with the labor laws.

Copyright 2014 The Associated Press. All rights
reserved. This material may not be published, broadcast, rewritten or
redistributed.