The U.S. 1st Circuit of Appeals has reversed an earlier decision to grant American Airlines skycaps around $330,000 in baggage fees. The American Airlines skycap reversal hinged on whether the court was to interpret the case via state tip laws, or if they were to interpret the case based on federal law. Federal law prevailed.
The skycaps brought the lawsuit against American Airlines after the airline began charging a $2.00 fee for passengers who opted for curbside check in of their baggage.
Before, passengers would usually tip the skycaps for their help - the service used to be free. However, with mounting costs, American Airlines soon decided to institute the new policy. Passengers were likely confused about if the $2.00 fee constituted a tip, and as a result, the tip income that many of the skycaps relied on fell dramatically, reports The Washington Examiner.