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In The Eye of the Storm: Brooklyn Cyclones and Tip Stealing

25 Aug 2026
Last Updated: August 25, 2026

On August 13, 2026, New York City local news outlet The City Reporter broke the story that “Brooklyn Cyclones concessions workers have been getting stiffed on some of their paychecks this season, as tips disappeared under new management.” The Cyclones are Brooklyn’s beloved minor league baseball team, and legions of New Yorkers make the trek to Coney Island every summer, not only for its iconic theme park and world-famous beach, but to catch a ball game. The Cyclones’ workers, though, have been having a much less enjoyable season.

According to The City Reporter, the private equity firm that purchased the Cyclones began employing its workers directly last year. As part of its hiring process, workers were required to sign an employment agreement that: 1) requires them to arbitrate disputes and 2) does not discuss tips. This raises two common, and problematic, trends in employment law.

The first trend is requiring workers who are paid hourly to sign arbitration agreements. Arbitration is an unfriendly forum for employees. Studies have consistently found that arbitration disadvantages workers. Congress acknowledged as much when, in passing the Ending Forced Arbitration Act in 2021, it found that “arbitration deprives millions of Americans of their day in court to enforce state and federal rights,” pushing them into a forum that “lacks many of the procedural safeguards of the justice system.” Presumably, the Cyclones’ workers’ arbitration agreements deterred them from asserting their rights when management was stealing tips.

The second trend is wage theft. Workers lose billions of dollars in unpaid wages every year. New York state has serious penalties for nonpayment of wages, including the ability to collect double what is owed on certain unpaid wage claims (called “liquidated damages”), and federal law also provides protections. However, wage theft like tip stealing remain prevalent. Under New York law, tips must be paid out by the end of each pay period. Additionally, workers who qualify as “service employees,” generally those who interact with customers, are the only employees who may participate in tip-pooling and tip-sharing. Managers and owners can never withhold their employees’ tips. Finally, wage statements must include a breakdown of tips and earned wages, and providing employees with defective wage statements is against the law in New York.

Tip-stealing is a persistent form of wage theft in New York, as is clear from this high-profile incident at a popular Brooklyn destination. If you believe that your employer is stealing tips or shorting workers on their pay, state and federal law may provide remedies. A qualified attorney may be able to help you determine what you are owed and whether you can recover your lost wages.

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Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, wage and hour and consumer class actions as well as shareholder derivative and merger and transactional litigation. The firm is headquartered in New York, and maintains offices in Atlanta, Los Angeles and Philadelphia.

Since its founding in 1995, Faruqi & Faruqi, LLP has served as lead or co-lead counsel in numerous high-profile cases which ultimately provided significant recoveries to investors, direct purchasers, consumers and employees.

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About Bill Baker

Bill Baker is an Associate in Faruqi & Faruqi’s New York City office.  Bill’s practice is focused on employment law.

Bill Baker
Associate at Faruqi & Faruqi, LLP
New York office
Tel: (212) 983-9330
Fax: (212) 983-9331
E-mail:wbaker@faruqilaw.com
Tags: Brooklyn, employee rights, employment law, Forced Arbitration, New York City, Tip Theft, wage theft, workers' rights, Workplace Rights

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