Canyon Ranch Settles Tips Lawsuit

by Deidre Woollard (RSS feed)
Oct 24th 2008 at 9:23PM

Often at spas and resorts, instead of having customers deal with tips a gratuity is built in. Easy for the customer and a little assurance for the practitioner, right? Well not in the case of Canyon Ranch, the luxury getaway in the Berkshires. As the Boston Globe reports, the resort has agreed to pay a whopping $14.75 million to around 600 massage therapists, hair stylists, waiters and other employees that worked at Canyon Ranch between April 2004 and October 2007 after a lawsuit accused Canyon Ranch of breaking a state law that prohibits management from taking tips reserved for service workers. Canyon Ranch has denied any wrongdoing in the settlement filed in Massachusetts this week, stating that service charge was "was never intended to be a significant part of the employees' compensation plan."

The suit said that not only did workers feel like they might lose their jobs if they asked to receive the tips but that guests were discouraged from giving extra gratuities. If a client still wanted to tip extra the worker couldn't accept the money directly but had to send the client to another area of the spa to complete the transaction. This isn't the first suit of this kind but it is one of the biggest payouts around.

Canyon Ranch has eliminated the 18 percent service charge instead charging a "resort amenities fee" that does not include tips. The spa still discourages tipping. Certainly resorts have the right to set up no tipping rules but in cases where the gratuity is added in it is natural to assume that the worker has received the tip just as they would have if you pressed the cash into their hands. Personally, while I can sometimes find the process of tipping to be awkward I would much rather have the control. I also tend to enjoy tipping, it allows me to visibly demonstrate my thanks for great service.

Tags: canyon ranch, tipping

Filed under: Spas

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Reader Comments (Page 1 of 1)

Christopher Hain Oct 24th 2008 11:54PM

Is there a way to contact Deidre?

Christopher Hain Oct 24th 2008 11:55PM

Is there a way to contact Deidre?

Dawn Farley Oct 28th 2008 5:24PM

What about all of the rest of the massage thereapists, waiters etc. that worked there before 2004? Why are they not compensated?

Zeek Nov 15th 2008 10:31AM

the law will only cover back 3 years from the date the suite was filed

DJ Oct 28th 2008 6:49PM

Here's a tip.... find another spa. They had an 18% service charge and didn't expect their customers to think it was a tip for the worker? Now it's just a "resort amenities fee". The management still doesn't get it.

HERRICKLAWSUIT Nov 2nd 2008 12:26PM

they didn't learn anything, they made my wife a job offer told her to give her then present employer 2 weeks notice. The day before she was to start they called to say no longer a job. The next day news came out about the 14+ millon dollar lawsuit. These people are the scum of the earth.

Byron Feb 26th 2012 9:27PM

What about the Las Vegas Canyon Ranch??? is there a lawsuit in Las Vegas??? I worked there as massage therapist,and was the most booked from opening(1999-2003)and everytime the tipping issue was brought up in our staff meetings we were always verbally threatend by our massage manager Shawn Smith and a few times by the Spa Director Blake or told hat if we bring up this tipping issue that we would be let go. Who do we contact about representing Las Vegas??? We did alot more massages than the other properties put together#!%*

zeek Nov 15th 2008 10:34AM

check the laws in NV and file suite, it the only way worker have a chance to stand up against management, unless a union is brought into the work place

Trisha Jan 5th 2009 2:23PM

I have been employed at Canyon Ranch Las Vegas since 1999. I am currently at Palazzo CRSpa. I love the company, the people, and the food. Unfortunatly, times are slow so people will look at this lawsuit as an opportunity to jump on the band wagon and try to exume what they can from CR. Americas great DEFAULT. I will always stand by this company. Canyon Ranch Staff has changed lives and helped thousands of people over the last 30 years.