Is it legal for a foodservice establishment to keep the charge tips for the servers?
Posted October 1st, 2009 by admin 1 Comment »
Eric W asked:
I know this coffee house where the baristas only get the cash tips (from the tip jar). If any customers use credit or debit cards, and leave a charge tip, the management pockets it. There is, of course, no sign or information to the customers about this, and the employees are not permitted to discuss it. Is this legal? It certainly sounds dishonest.
Tips from the tip jar are not reported as income. The management includes the charge tips in its sales income, and does not allocate these to the employees.
I know this coffee house where the baristas only get the cash tips (from the tip jar). If any customers use credit or debit cards, and leave a charge tip, the management pockets it. There is, of course, no sign or information to the customers about this, and the employees are not permitted to discuss it. Is this legal? It certainly sounds dishonest.
Tips from the tip jar are not reported as income. The management includes the charge tips in its sales income, and does not allocate these to the employees.