When a Brand Promise Backfires

August 19, 2013 – In The News

Carolyn Richmond was quoted in the Forbes article "When a Brand Promise Backfires" While the full text can be found in the August 19, 2013, issue of Forbes, a synopsis is noted below.

A New York Sushi restaurant made headlines recently, when they announced they would no longer accept tips. The move has many in the hospitality industry cautioning of how the policy could backfire.

Carolyn Richmond, a partner at Fox Rothschild, says, while a no tipping policy isn’t necessarily a bad idea, the answer lies in the revision of wage and hour laws to address the epidemic of abusive litigation.

“Eliminating tipping will not solve all of the problems, and what lies at the root of this issue are archaic laws that are on the books,” Richmond said. “We have different needs than in 1938. The wage and hourly laws need to be changed with A-to-Z reform.”