Workers at Crowne Plaza in Pittsfield getting $1.3 million lawsuit settlement over tips

By Katie Johnston, Globe Staff

Banquet workers at a Pittsfield hotel have reached a $1.3 million settlement to end a class-action lawsuit that accused management of withholding tips. The Crowne Plaza added a 20 percent service charge to banquet bills, but only paid a portion of it to the servers, busers, and bartenders, according to the lawsuit. State law mandates that service charges must be paid to staff working the event.

Settlement agreement notices were mailed last week to about 150 people who worked at the hotel between November 2006 and June 2010. Final approval will be determined in May.

Crown Plaza officials did not immediately return a phone call seeking comment.

The case is the latest in a series of tip and wage violation lawsuits at Berkshires resorts, including the Cranwell Resort, Spa & Golf Club in Lenox, which in October agreed to a $7 million settlement for 700 workers; and Canyon Ranch in Lenox, which agreed to pay $14.75 million to about 600 spa employees in 2008.

In Boston, waitstaff at the Harvard Club sued management in November for withholding the 17 to 20 percent surcharge on food and beverage bills collected “in lieu of a gratuity.’’

‘We’ve seen a broad pattern of noncompliance and violation of this law in catering companies, hotels, resorts, spas, and banquet facilities,” said attorney Paul Holtzman, who represented the workers at Crowne Plaza, Cranwell Resort, and Canyon Ranch.

Holtzman is looking into tips violations at several establishments in the state, including at other Crowne Plaza hotels.