Grand Traverse Resort & Spa Sued; Illegal Pay Deductions Alleged

The Business News has learned that a class action lawsuit against Grand Traverse Resort and Spa was filed today by six current and former Spa employees, alleging $1 million in cash was unilateraly deducted from their wages and tips.

The suit, filed today in Circuit Court, alleges that the employees:

had money deducted from their wages in violation of Michigan law had money deducted from their customer tips discounted or diverted by the Resort; and/or were denied commissions on the sale of products in violation of Michigan law.

Specifically, the suit cites MCLA 408.477, which notes that employers may not deduct from an employee's wages without 'full, free, and written consent of the employee.'

The suit alleges the Resort has been 'unilaterally deducting, without notice, reporting or permission, $150.00 from each pay check of class members dating back over six years. These deductions continued until employees recently complained about violations of Michigan law.'

According to the suit, more than 150 current and former Spa employees qualify for the class action. The suit continues, 'It is believed that Defendant has denied compensation to Plaintiff class members in an amount exceeding $1,000,000 over a six year period.'

Reached about the suit, Grand Traverse Resort & Spa Public Relations Manager J. Michael DeAgostino said the Resort does not comment on pending litigation or on internal employee issues.