Hawai`i hotel wins latest round in F-B service fee case

Author: David F.E. Banks


In March, the Hawai`i Intermediate Court of Appeals ruled that Kahala Hotel complied with a state antitrust law governing the fees charged for food and beverage services (aka F&B service charges). HRS § 481B-14 compels hotels and restaurants that apply F&B service charges to either “distribute the service charge directly to . . . employees as tip income” or “clearly disclose to the purchaser of the services that the service charge is being used to pay for costs or expenses other than wages and tips of employees.”

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