Hardy v. Tournament Players Club at Southwind, Inc.

Employee asserted a private right of action against Employer under the Tennessee Tip Statute, Tenn. Code Ann. 50-2-107, for Employer’s failure properly to pay tips, gratuities, and service charges. The trial court granted Employer’s motion to dismiss for failure to state a claim on the ground that there was no private right of action under the statute. The court of appeals reversed based in part on a 1998 court of appeals opinion, Owens v. University Club of Memphis, recognizing a private cause of action under the Tip Statute. The Supreme Court reversed the judgment of the court of appeals and affirmed the trial court’s judgment, holding (1) Owens is inconsistent in part with subsequent Supreme Court jurisprudence on implying a private right of action under a statute, and therefore, this Court declines to apply the doctrine of legislative inaction to presume that the legislature knew of the holding in Owens and acquiesced in it; and (2) Owens is overruled to the extent that it is inconsistent with the Court’s holding here that an employee has no private right of action under section 50-2-107. View "Hardy v. Tournament Players Club at Southwind, Inc." on Justia Law