A US$14.7m (11.7m euro, £9.4m) settlement has been agreed with around 600 former employees of Canyon Ranch in Lenox, Massachusetts, US.

The former workers filed the class-action lawsuit against Canyon Ranch in May 2007, reportedly claiming they didn’t see any of an 18 per cent ‘service charge’ paid by customers and “feared that they would lose their jobs if they pursued their inquiries or pressed for payment of the tips”.

However, Canyon Ranch’s founders, Mel and Enid Zuckerman, said the fee was never intended to be viewed as a gratuity, arguing that the company provided “a comprehensive pay and benefits package which... frees our employees from having to depend on tips”.

The ‘service charge’ has since been renamed as a resort amenities fee.

The first Canyon Ranch Health Resort launched in Tucson, Arizona, US, in 1979. The company currently has two health resorts – in Tucson, Arizona, and Lenox, Massachusetts.

The settlement – understood to be one of the biggest of kinds in Massachusetts – now awaits a judge’s approval from the US District Court in Springfield. Details: canyonranch.com