Judge Lorna Schofield, of the Southern District of New York. Photo: Rick Kopstein/ALM
A potential class action that claimed fees on Stop & Shop LLC’s Peapod grocery delivering service were in fact tips owed to employees was shut down Tuesday by U.S. District Judge Lorna Schofield of the Southern District of New York.
The suit principally alleged violations of New York’s labor law by the grocery chain. The plaintiffs claimed that the delivery fees incurred by customers should be treated as tips. They claim the online ordering process fails to properly alert customers to the fact the fee is not gratuity. They pointed to the fact that the website is without the ability to include a tip and tells customers that tipping is optional.
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