American Airlines bans tips for skycaps at Boston’s Logan International Airport

16 May, 2008: American Airlines Incorporated, based in Fort Worth, Texas, the United States, has banned tips for skycaps at Logan International Airport at Boston, Massachusetts, after a judge awarded $325,000 to 9 skycaps who had sued the carrier, claiming that a $2-per-bag curbside check-in fee cut into their income and also violated the state’s tipping laws.

In a press release, American Airlines, the largest airline in the world in terms of total passengers-miles transported, said it made the change to ensure compliance with the Massachusetts tips law.

American Airlines is owned by AMR Corporation, which is a commercial aviation business and airline holding company based in Fort Worth, Texas.

A federal jury had, in April 2008, ordered American Airlines to pay $325,000 to 9 skycaps at Logan International Airport who claimed that they lost tips when the airline began charging $2 per bag for curbside check-in service.

The airline, which has appealed against that verdict, explained in the pres release: “A 10th skycap, based in St Louis, Missouri, lost his case against American Airlines since he is not covered by the Massachusetts tips law. American Airlines’ motion is partially based on the fact that eight of the skycaps who were awarded damages were not employees of American Airlines.”

American Airlines has also asked the court for a new trial.

According to the press release, American Airlines’ customers in Boston who wish to use curbside check-in can still do so and pay the existing $2-per-bag check-in fee collected by American Airlines or its third-party vendor, G2 Services.

However, tipping will no longer be allowed.

G2 Services, the vendor that provides skycap and other services to American Airlines at Boston’s Logan International Airport, has advised American Airlines that all of its skycaps at Boston will receive immediate hourly wage increases that are in full compliance with all federal and state hourly wage laws, the company release added.

The one skycap directly employed by American Airlines at Boston has previously been paid at rates well above federal and state laws and he will receive a wage increase as well.

The airline said it is making the changes at Boston because of “the unique nature of the Massachusetts tips law, as well as a recent amendment to Massachusetts wage and hour laws that will make triple damages automatic for violations, effective from July 13, 2008.”

The press release explained: “Even though American Airlines believes it has always been in compliance with the state’s tips law, because of the lawsuit’s outcome and the potential length of the appeals process, it felt immediate changes were necessary to ensure compliance with the laws in Massachusetts. The airline does not plan to install the no-tipping policy for skycaps at airports in other states because the tips law is unique to Massachusetts.”

The website aero-news.net quoted Shannon Liss-Riordan, an attorney representing the skycaps, as saying: “The American Airlines’ move is retaliatory. Tipping is a universal practice among passengers, and this is how skycaps have earned their livings for decades. Clearly, American Airlines’ decision to try to stop people from tipping skycaps is in retaliation against these skycaps who asserted their rights under the state tipping law.”

Tim Wagner, spokesman for American Airlines, countered Liss-Riordan’s comments by saying: “The tipping is in no way a spiteful gesture, but is rather a necessary measure to ensure American Airlines is not violating Massachusetts law. The state has one of the most employee-friendly tipping laws in the country, which states all gratuities or service charges must be paid in full to employees providing a particular service, regardless of whether workers already make minimum wage.”