This Law Firm Publication by Jackson Lewis LLP discusses Allende v. PS Brother Gourmet, Inc., in which the Federal District Court for the Southern District of New York held, in a case of first impression, that an employer likely violated the FLSA and New York law when it deducted the full amount of service fees (charged by internet food delivery sites) from employees' gratuities. Although an earlier decision of the US Court of Appeals for the Sixth Circuit allowed an employer to deduct credit card processing fees from employee gratuities, some of the fees in this case were not needed to generate employees' gratuities.