New York State Attorney General Eric Schneiderman announced on Monday that an Endicott-based limousine service must pay a hefty fine after failing to pay tips to its drivers. Coachmaster is being fined $40,000 after it retained a portion of tips that passengers intended for drivers, instead using the money for “administrative purposes”, a practice which Schneiderman says is against the law. Coachmaster has agreed to pay $20,000 in restitution to affected employees, along with a civil penalty of $20,000. An investigation reportedly showed that Coachmaster suggested a 15 percent gratuity, but kept about one-third of tips for its own purposes, without telling consumers that a portion of the tip would head back to the company. New York’s labor laws specifically prohibit employers from retaining tips meant for employees.
