Appeals Court Reverses Decision on AA Skycap Tips

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    An American Airlines baggage supervisor was arrested for allegedly stealing one passenger's brand-new clothes.

    A federal appeals court has reversed a ruling that awarded more than $333,000 to nine skycaps at Boston's Logan International Airport who claimed they were cheated out of tips when American Airlines started charging curbside baggage fees.

    The lower court's decision had been based on Massachusetts law. The 1st U.S. Circuit Court of Appeals, however, says in a ruling released Monday that state law was pre-empted by federal law regulating airlines. It also says American Airlines clearly indicated with signs that the $2 fee started in 2005 was not a tip.

    Skycaps said in their lawsuit that many passengers thought the fee was a tip, and their income fell dramatically. They said the fee was a violation of Massachusetts law that protects service workers.