Local 27, United Food And, Commercial Workers Intern. Union, Afl-Cio v. Delaware Park, LLC

**Union Loses Fight Over Tips in Worker Back Pay Case** A union representing food service workers at Delaware Park sued the casino, claiming that when workers were wrongfully terminated and later awarded back pay through arbitration, that back pay should have included the tips they would have earned during their time off work. The court sided with Delaware Park and ruled against the union. The judge found that the arbitrator's original back pay award was correct in not including tips. The court determined that under both the workers' union contract and Delaware state law, the employer is only responsible for paying wages directly – not tips that customers might have given to workers. Since tips come from customers rather than the employer, Delaware Park had no legal obligation to compensate workers for lost tip income when calculating back pay. This ruling matters for workers because it clarifies that in tip-based jobs, employers typically aren't required to pay for lost tips when workers receive back pay after wrongful termination. Workers in restaurants, casinos, and other tipped positions should understand that back pay awards may only cover their base wages, not the tips they might have earned during their absence from work.