Does California Labor Code Section 351, which prohibits employers from taking “any gratuity or part thereof that is paid, given to, or left for an employee by a patron,” create a private right of action for employees? In Lu v. Hawaiian Gardens Casino, Inc., the California Supreme Court holds that Section 351 does not contain a private right to sue.

This decision, issued on August 9, 2010, forecloses employees from bringing class action lawsuits for alleged violation of California’s tip-pooling statute, which until now has been one of the engines driving wage and hour class action litigation in California.