NY Regulates Tipping For First Time

The New York Department of Labor has issued rules on what until now has walked a gray line between custom and law: the tip.

The new regulations let employers set whatever kind of tip policy they wish, whether staff pools tips or collects their own and gives out shares to other people on the team.

Employers are forbidden from skimming from the tips and the new laws delineate which staff are eligible for tips (food service only, waters, bartenders, bussers, sommeliers, and hosts, as long as they are not also managers).

The work order also says that restaurants and caterers can’t put automatic gratuities on bills that sound like they’re tips but then actually pocket the money themselves.

The new clarity follows a lawsuit filed against famous NY-based chef Mario Batali who was sued by waitstaff at his restaurants for allegedly withholding tips made on credit cards.

Work Order Summary (PDF) [labor.state.ny]
Full text of the new regulations here (PDF) [labor.state.ny]

Comments

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  1. FireJayPa says:

    If I’m required to leave a tip because of some outdated belief system, then it’s really not a tip – is it?

    How about the restaurant pay their employee a decent wage instead of making me feel it’s my responsibility.

    • thompson says:

      In the end though you’d likely be paying the same amount—that 15-20% or whatnot would just be incorporated into the menu prices. Plus, you’d then have to pay sales tax on the tip.

      • Loias supports harsher punishments against corporations says:

        In addition, on the system you (FireJayPa) propose, you would have no choice but to pay 15-20% more for your food. In the current system, if your service is poor you can pay less. Your system would encourage poor service.

        • FireJayPa says:

          That’s fine, I’ll pay the extra 15% and then if the employee does a better job I’ll leave a tip.

          Also, I’m the guy that never tips in cash…I tip on the credit card. Those people will be paying taxes on my tips…not pocketing that money under the table.

          • ohhhh says:

            so you make them pay taxes on the tip as well as take a hit on the credit card transaction fee? you sure are a swell guy.

            • coren says:

              I am pretty sure the CCtransaction fee does not come out of tip.

            • FireJayPa says:

              If they don’t like it , they are free to make a career change where their salary isn’t dependent on me tipping.

            • Chaosium says:

              “so you make them pay taxes on the tip as well as take a hit on the credit card transaction fee? you sure are a swell guy.”

              Servers do not pay the CC fees. The house does, I don’t understand your problem. As an ex-server, I don’t see any significant difference really between cash and credit. Underreporting gives you a SLIGHT edge, but the customer convenience to pay via card is better, in most cases. I never carry cash anywhere, really.

        • Rachacha says:

          Perhaps, but assuming that restaurants abolished tips and paid a decent wage to servers etc.servers would likely provide good service because they would be more likely to be fired if they were not meeting the restaurant’s standards as management would know that poor service would impact business and their bottom line if they did not provide a high level of customer service.

          Many years ago, I worked at a restaurant that also catered a large number of special events (weddings, showers etc). When I worked in the restaurant, I was paid $2.35/hr + whatever tips I collected, however when I worked a catering event, I was paid above minimum wage. My employer collected a 15% gratuity on the total bill and used that money to provide the servers and buss staff a higher hourly wage.

          Based on this, turnover in the restaurant staff was high (most left after a few weeks/months), however staff in the catering side of the business tended to stick around for many years. Because of the high turnover, management rarely fired the restaurant staff (unless they stole) because they knew they would be gone in a few weeks anyways, but the catering staff was regularly disciplined/fired if you did not meet the management’s expectations and we were rewarded with a salary increase if you were consistently providing a high level of service.

          There is a restaurant that recently opened near me and they do not accept tips, and the couple times that I have been there, service was always excellent.

          • Loias supports harsher punishments against corporations says:

            And higher quality/priced restaurant do in fact pay reasonable wages not including any tips. And those staff tend to stay longer because they are more satisfied, and probably do a better waiting job overall.

            So you get what you pay for I suppose.

      • c!tizen says:

        Yeah, and if you do it right you can count tips as “charitable donations” come tax season!

        /sarcasm …for all of you shady tax sharks.

    • ChuckECheese says:

      It’s not religion, it’s an economic institution. One that unfortunately gives too much latitude to cheapskate customers and greedy thieving restaurant managers. Funny how people become personally offended at centuries-old customs that are part of everyday life.

      • Loias supports harsher punishments against corporations says:

        Playing devil’s advocate. It used to be an every-day occurance to beat your wife. But at some point it was offense to enough people that we abolished it. The way you said that, you would be surprised that people were personally offended at the notion of beating your wife.

        • Loias supports harsher punishments against corporations says:

          The same could also be said for Slavery – at one point it way, definitively, an every-day occurance.

          Also, Hitler – might as well get Godwin’s Law comments in there, too.

          • Red Cat Linux says:

            Godwin needed some sort of corollary to cover interweb arguments regarding religion, politics, abortion and tipping. Personally, I don’t think Hitler gets as much play time as the others do these days.

        • JulesNoctambule says:

          And your example is totally an equivalent to the topic at hand!

          • Loias supports harsher punishments against corporations says:

            It was most definitely related to ” Funny how people become personally offended at centuries-old customs that are part of everyday life.”

            Since this is her main complaint, a related counterargument was most appropriate.

            • ChuckECheese says:

              No, it’s still not the same, because then you’re taking my comment out of context and substituting your wife-beating own context. Tipping is benign; domestic violence is not. It takes a near autistic level of literalism to fail to see that. Somebody sure likes their wife-beating. Do you still beat your wife?

              And ChuckECheese is a man. A man dressed like Nina Hagen’s cover for NunSexMonkRock. It seemed sorta Christmas-sy at the time. Also sorta Orthodox, which means I can’t take it off until 6 or 7 January. A friend credits this album and LSD with his conversion to Mormonism.

        • ChuckECheese says:

          Yet nobody is really trying to do away with the custom of tipping. Now that gender relationships and domestic violence are solved, it is high time that grad school feminists put down their lattes and got busy, missy.

    • SonarTech52 says:

      The article says that they regulated what Employers do with tips.. Like managers shouldnt get a part of it, whether or not they are going to pool tips or per each person etc.. It doesn’t say anything about you being required to tip.

    • Mr_Human says:

      Not really what the article’s about.

    • YouDidWhatNow? says:

      It’s not a belief system – it’s the industry-standard compensation program for food service workers, as described by law.

      The law doesn’t preclude a business from paying it’s staff a better wage and then not allowing tips. But very, very few places choose to do such a thing.

      The law allows for these workers to make less than minimum wage on an hourly basis…granted that they are allowed to keep tips. It’s my understanding that tipping has to make up at least that difference, or the employer has to make up what’s left. If said employees want to make more than minimum wage, they are therefore encouraged to provide excellent service to their patrons in order to attract the largest tips possible. The whole system is meant to make sure that food service staff give the best possible experience to the customer.

      Now, feel free to disagree with that system if you want…but it’s not an “outdated belief system” – it’s a pretty darned modern, legally-described compensation program.

      The flip side is that if you just paid all wait staff, say, $10 an hour across the board…they don’t have any extra incentive to do anything more than the bare minimum to keep their job. Because of that, the patron’s experience can suffer, and the success of the business can suffer. And you, as the customer, wouldn’t have any say in their compensation as you do now – where you can choose to reward excellent service, and by not leaving a tip, refuse to reward poor service. Not hard to see how everybody could lose in that scenario…

      • raydee wandered off on a tangent and got lost says:

        I’m reminded of the phrase, “I’m not paid enough to care,” used by retail employees across the nation … What if this performance-based compensation method was used across the board?

        Would we actually become a meritocracy, where people who work hard and care about the jobs they do become valued and rewarded employees, and the silly airheads who trade shifts willy-nilly to go to concerts every weekend and when they do have to work sit and file their nails behind the counter, ignoring requests for assistance suddenly find themselves in a financial pit of despair?

        • Griking says:

          Lazy people are going to be lazy regardless of how much they earn.

        • Merricat says:

          Or will we find ourselves stuck in a world of mandatory ‘optional’ tips where we still get crap service from those who don’t give a shit because they get enough money from those with overactive consciences to outweigh the loss of income from the few who actually weigh the quality of service before deciding how much to tip?

          Would we find that service gets even worse in many cases, because now, instead of just inconveniencing these ‘lazy’ folk by requesting they do their job, you’ve also offended them by not tipping them as much as they think they should be getting and so they decide to take it out on you and the others they serve.

          Because like it or not, outsourcing or not, ‘meritocracy’ or not, there is always going to be a shortage of folk willing to work for tips AND who are also willing and able to ‘do a good job’.

          • ChuckECheese says:

            I’m not altogether certain about what you’re saying, but it sounds sorta like you’re suggesting that if people actually got paid a regular wage to work, they’d work less, possibly because they don’t feel they’re being paid enough? And consequently people should have to shuck and jive for their wages? Waiting tables is about as shuck and jive as it gets. I loathe the day employers decide to pay us all $2.13 an hour, and then give us merit pay based upon their ever-changing whims regarding our performance. Excuse me, I have to go kiss my boss’ ass now; it has been at least an hour since I have last.

            • speedwell (propagandist and secular snarkist) says:

              He’s essentially saying that if we made table serving a profession, professionals would occupy those positions.

      • Rose says:

        If an employee is being underpaid, he should quit. There is no reason why third parties should be expected to make up the shortfall. If you can explain why a dispute between party A and party B should involve money being extorted from party C, please do so.

        All of the other arguments about labor laws being adjusted to compensate for this custom are beside the point; those changes (if they are indeed legitimate) were made as a reaction to this custom, so they do not justify it.

      • FredKlein says:

        The flip side is that if you just paid all wait staff, say, $10 an hour across the board…they don’t have any extra incentive to do anything more than the bare minimum to keep their job. Because of that, the patron’s experience can suffer, and the success of the business can suffer.

        Yet, every other business out there does exactly that- pay their workers themselves, and not expect the business’s customers to make up the difference.

      • babbottnz says:

        The argument concerning tip = performance doesn’t really hold up. On paper it does, but I’ve been to countries where tipping isn’t done (and frowned upon as odd) and the service has been equal or better overall than what I would find in the America. I left the US 10 years ago and every time I go back I forget that the menu doesn’t include sales tax and gratuity. I now find this odd and I’m always grateful when I go out in my current country that the number in the price column will actually equal what I’m going to pay when I get up the counter. The same applies to our hotels, motels, restaurants, airline bookings, etc. It’s been awhile since I’ve seen a hidden or additional cost (i.e. tax added at the counter or an additional “booking fee” not already included in the quoted price). Come to think of it, it was 2 years ago in Los Angeles.

      • common_sense84 says:

        This is such a lie. Customer experience will not suffer, because the worker will get fired if people complain. Just like any other job.

        There is no loss in anything if the worker doesn’t work on tips. In fact, most places I have been that do not allow tips seem to have better service and nicer workers. I have never gotten service good enough to deserve a tip at restaurants that require tips. As no one has ever done anything beyond the normal job. Which makes sense, because there is nothing they have to do beyond taking your order, delivering the food, and refilling drinks. The job is damn easy anyone can do it.

        • Chaosium says:

          Yep. Tips should be removed entirely and people will be FIRED if they do not perform good customer service. People feel obligated to tip bad employees and keep them employed, and good employees get shafted all the time on tips. The fairest way would just be to pay a decent wage to begin with.

    • backinpgh says:

      Uh, try RTFA and try again.

    • NickelMD says:

      Because that is the current system, and your server is paid based on that system (often less than minimum wage.) If the system were different and most people didn’t tip but waits were paid a living wage (which translated into a higher cost of the menu items that you select) then it would be reasonable to not tip.

      As it stands in the current system, if you don’t tip you are essentially deciding yourself that your serve make less than minimum wage in order to have the privilege of serving you. That is, you are a freeloader who cares only about themselves.

      Personally I would prefer a non-tipping system in which service staff made a living wage and the menu items 15% more costly. However the way to change that is not to refuse to tip (which is just being a cheap freeloader) but to pressure the businesses that you frequent and your lawmakers to eliminate the practice. But I bet you aren’t doing that. You just like to freeload.

      • LadyTL says:

        No if I don’t tip, their employer decides they shouldn’t make minimum wage because if the server does not make enough in tips, their employer is supposed to make up the difference in pay. The only freeloader here is the employer not the customer who is paying for their food and service.

      • sasakan says:

        Uhhh…. if I recall correctly, it is also a law that employers must pay additional wages to catch an employee up to minimum wage if their tips aren’t getting them to minimum wage. I could very well be wrong on that. But it also seems to me that an employee who doesn’t make minimum wage very often would not be an employee for much longer since the cheapskate business owners wouldn’t want to keep making up the difference.

        • Chaosium says:

          “Uhhh…. if I recall correctly, it is also a law that employers must pay additional wages to catch an employee up to minimum wage if their tips aren’t getting them to minimum wage. I could very well be wrong on that.”

          You’re not, employees can file a form. But, in the end, they rarely do even if deserving it.

    • puTTY says:
    • Chaosium says:

      “some outdated belief system”

      It’s not outdated if it’s currently used.

      • blanddragon says:

        Sure it is. People ‘use’ Model A cars still. Ford Model A is outdated. Ford Focus is not. But they are both cars you say.

        • SabreDC says:

          Perhaps Chaosium should have been more clear. I believe he meant (and I agree with) “It’s not outdated if it’s currently used widely.” The Model A may be used sparingly by collectors, but it is certainly not widely used. Tipping isn’t outdated because it is widely used.

        • Chaosium says:

          “Sure it is. People ‘use’ Model A cars still. Ford Model A is outdated. Ford Focus is not. But they are both cars you say.”

          Model A cars are not the dominant car on the road. Tipping is by far a primary method of restaurant pay for servers. Your analogy is not accurate.

    • Southern says:

      It looks like this may vary from state to state too, complicating things even more. In CT, for example, apparently the state law is that restaurants must be paid at least $5.69 per hour (instead of the Federal $2.13).

      http://www.ctdol.state.ct.us/wgwkstnd/faqs-employers.htm

      What is the minimum wage for waiters and waitresses?
      The minimum wage for waiters and waitresses is the current minimum wage less 31% for tips. Therefore, effective January 1, 2010 the minimum wage for waiters and waitresses is $5.69 per hour which is calculated in the following manner:

      31% of $8.25 is $2.56; $8.25 minus $2.56 equals $5.69 per hour.

      IMPORTANT NOTE: All state and federal taxes are required to be paid based on the higher amount (gross wages — in the above scenario it would be based on $8.25 per hour).

      • Griking says:

        Just our of curiosity but if Connecticut law requires that waitresses are paid more than than Federal law does then does that mean that the amount that we’re expected to tip in Connecticut is less since there’s less wage to make up for?

      • SabreDC says:

        Wow, they really overcomplicated it. Why not just say “The minimum wage for waiters and waitresses is 69% of the current minimum wage. Therefore… 69% of $8.25 equals $5.69 per hour.” Did they really need to get into the whole 31% of $8.25 is $2.56; $8.25 minus $2.56 blah blah blah stuff?

        • common_sense84 says:

          Because the minimum wage for these employee is the same minimum wage for everyone else by law. No law allows them to be paid less than minimum wage.

          You seem to have fallen for the old lie servers tell customer to get bigger tips.

          The way it works is that the worker is paid minimum wage no matter what. The business is allowed to take part of the tip the employee gets to pay for the initial minimum wage. Since the initial minimum wage is something the business has to pay the employee no matter what, essentially the business gets a cut of the tips for no reason. In many cases the business is getting more tip each week than the employee.

          The 2.15 thing is the amount the business has to pay out of pocket no matter what. So a business will pay out of pocket 2.15-7.25 depending on how many tips the employee gets. Which means if the worker works 40 hours a week, the first 204 dollars in tips goes to the business to pay for this tip credit. So if it is a slow week, the business gets more of the tip than the employee.

          This is how the federal law that covers all tipped employees works. There is no a single tipped employee in the US that ever makes less than minimum wage. The only variation is that states can increase the minimum wage and as a result the minimum amount the business has to pay out of pocket no matter what.

          So next time you tip, keep in mind that if you tip the business gets most of it. If you don’t tip, the worker gets minimum wage like everyone else working food service jobs.

    • Erik Hughes says:

      Here in WA, that’s exactly what they do. All servers and bartenders are paid at least the minimum wage.

      http://www.lni.wa.gov/WorkplaceRights/Wages/Minimum/

      • common_sense84 says:

        All states are like that per federal law. The federal laws says the workers must be paid minimum wage no matter what. But the business gets to apply up to 5.10 an hour towards what they pay the employee in what is called a tip credit.

        So tips really go to the business first. Only when the average tip is higher than 5.10 an hour, does the worker get anything.

        This is one of the biggest lies food service workers repeat over and over again. They all claim to be making like 2.15 an hour when they no damn well they are paid minimum wage + anything left over in tips after the business takes it’s cut.

        • danic512 says:

          Uh, you need to read the link again.

          Can a business count workers’ tips when making sure they get at least minimum wage?

          No. Businesses may not use tips as credit toward minimum wages owed to a worker.

          This is one of the many reasons WA rocks.

          • Erik Hughes says:

            Servers have to be paid minimum wage and somehow there are still many, many restaurants around here. Why don’t other states do this?

    • common_sense84 says:

      All employees are paid at least minimum wage. The tipping system in America is screwed up.

      If the worker works 40 hours a week, the first 204 collected in tips for the week goes straight to the business. If the worker makes less than 204 in tips, the business has to make it up by paying the difference.

      But the worker only gets to keep tip money above 204 dollars. So think about that next time you choose to tip. The business will most likely get a bigger cut of the tips at the end of the week than the employee. And if you do not tip at all, the worker no matter what gets at least minimum wage.

      • JonBoy470 says:

        Actually, emplyers must pay a minimum of $2.13/hr. to tipped employees. To do this, the employee is required to be able to keep their tips, must receive at least $30 in tips monthly, and the total of tips plus wages must equate to at least minimum wage. This according to the US department of labor http://www.dol.gov/elaws/faq/esa/flsa/002.htm States may have their own, more stringent requirements (such as higher minimum wages). The employer isn’t quite “pocketing” the first $204 so much as shifting their labor costs directly to the customer, as oppesed to embedding them in their menu prices.

        Personally, I see tipping as a system that is absurd on it’s face, but that actually works. Tipping as compensation incentivises attentive, conscientious service. I’ve given tips as high as 50% (suffice it to say the waiter at the restaurant where I proposed to my wife was very helpful). I’m also not opposed to the penny in the bottom of the beer glass, though I’ve never been driven quite to that point.

  2. SilentAgenger says:

    Oh boy…here we go…

  3. dragonfire81 says:

    Would it be possible for any government to pass a law requiring customers to tip at certain establishments?

    • Loias supports harsher punishments against corporations says:

      No, because the law would violate the definition of tip. You can’t make a law forcing you to do something, which by definition, is voluntary.

      • Happy Tinfoil Cat says:

        Like buy health insurance. I just had to go there didn’t I?

        There should be a law requiring tips for exotic dancers in tanning spas so they would not succumb to prostitution. ;^)

      • dragonfire81 says:

        So how is it we have a forthcoming law requiring people to buy health insurance, which is, at this point in time, voluntary?

        • ARP says:

          The distinction is between positive and negative. It’s not saying you must buy health insurance, its saying there is a penalty if you don’t. Perhaps semantics in your view, but you can’t be arrested simply for not buying insurance.

          BTW- this article isn’t about forcing tipping. It’s saying that when people do tip, the managers/owners can’t take this money from the service staff.

          • dragonfire81 says:

            I know the article isn’t about opposing tipping, when I read it though I thought about this “other side” of the argument and then posted a comment.

            Is it fair to penalize people for choosing to not get health insurance? What’s next? Penalizing people who don’t want to buy an Ipod?

        • coren says:

          Health insurance, isn’t by definition, voluntary. A gratuity (what a tip is) by definition, is voluntary

      • Difdi says:

        Yes you can. Obamacare.

    • pecan 3.14159265 says:

      That defies the entire meaning of a tip. It’s voluntary.

      • Griking says:

        It is?

        So I can choose not to tip and not be looked down upon?

        • sonneillon says:

          Only if you do not plan on eating their again. Wait staff remember bad tippers and rude guests. I know a few waiters from my experience as a supplier, and while I don’t agree with the practice they do some unpleasant things to food of people who are perceived to be cheapskates. Not always sometimes they are too busy but you might end up with pee in your drink if you stiff them on the tip.

          • FredKlein says:

            So…. tips are blackmail payments to stop waiters from messing with my food? That puts waiters in a whole new light….

            • George4478 says:

              Congratulations on being born yesterday.

            • sonneillon says:

              Welcome to a world where people who make 2.25 an hour don’t care about their job because another place will be willing to pay them that pittance to work for them too. Because they do not care they have the freedom to act with spite and malice. If you don’t tip there is a good chance your food will get messed with. Maybe just spit in maybe worst. You can call it blackmail and be mad about it but that doesn’t change things.

            • YokoOhNo says:

              You learned something from the interwebs, yay!! Now’s the time to take that information and treat an entire group poorly based on that information! i hope you never get mugged by a Norwegian.

        • coren says:

          Just because it’s voluntary doesn’t mean there’s no consequence.

          Also, looked down on by who? (whom? whatever)

    • Hi_Hello says:

      like VAT?

      They can add a new ‘tax’ to certain type of establishment.

    • Difdi says:

      Perhaps. But if they did, it would make the establishments liable to theft-of-service lawsuits, possibly even criminal charges, if the service is poor but the establishment charged a “mandatory gratuity” anyway. Depending on how large the “mandatory gratuity” were to be, and which state it happened in, the theft-of-service might be a felony.

      Which would you rather face, if you were waitstaff: A poor tipper or an arrest on a felony charge?

  4. chuckv says:

    I’m pretty sure that tipping exists because tips aren’t taxed.

    • Mighty914 says:

      They sure are taxed. They are, however, underreported.

      • Cheap Sniveler: Sponsored by JustAnswer.comâ„¢ says:

        Or over reported. If the management overestimates your tips…

        Point being, it’s not very accurate either way.

    • pecan 3.14159265 says:
    • drizzt380 says:

      Whether they are actually taxed or not, they are supposed to be taxed.

      Not properly reporting your tips is tax evasion.

    • Cheap Sniveler: Sponsored by JustAnswer.comâ„¢ says:

      As income, they are taxed.

    • Loias supports harsher punishments against corporations says:

      Yes, tips are taxed as income, but if they were part of the cost of the meal they would be taxes twice – once as sales tax and again as wages. At least this way it’s a lower cost to the consumer.

    • NickelMD says:

      They are taxed. And even if you don’t tip, your server has to pay taxes on a minimum of 8% of your total bill. So if you tip $0 on a $100 bill, your server must pay taxes on $8 they never got.

      • drizzt380 says:

        Its not that the tipped employee has to pay tax on $8 even though they received no tip.

        Its that the IRS knows that there is rampant under reporting of tipped income. Someone, somewhere, came up with the 8% figure. They know(or at least have enough evidence to tax you and the regulation hasn’t been legally struck down by now) that employees are generally tipped at least 8% even when there are people who don’t tip. And this is calculated over all tips. It isn’t calculated on every receipt. On form 8027, if 8% of gross receipts does not equal or exceed total tips reported, the owner is required to allocate the difference in one of three methods

        If two groups each have a $100 meal, and one tips nothing and the other tips $16, the server is not going to be taxed on the $16 and then 8% of the receipt on the other, making their tipped income appear to be $24 when it is in fact $16. They are going to see receipts of $200 and tips of $16. Or at the 8% level.

        I mean, I see people say this 8% thing all the time. But I am fairly sure that no tax law is going to withstand scrutiny if it is taxing people on more than they earn.

  5. Red Cat Linux says:

    I’m not a happy tipper. I’ll tip, but I’m not happy about it. I wish people would just get paid a proper wage instead of this nonsense. Instead of it being a sign that a customer was particularly pleased by service, it’s the wage of the poor sod who sees to their meal.

    And I really hate tipping on the credit card, and will only do it if I have no cash on hand. I’ll pay the bill on the card, leave cash at the table. I’ve always wondered if the staff actually get paid properly from CC tips, or if they get paid much later, whereas with a cash tip, they get paid sooner.

    • Loias supports harsher punishments against corporations says:

      I hate it, too. You see the bill, and it’s not that bad, and then you tack on 15-20%? Always a sad moment to see that bill go up another $5-15.

      But then there’s that occasional time I get really shitty service. And then the tip is great, because you get to actually get to react to poor service.

    • Mr_Human says:

      That’s how it’s done in Europe. Waiters are paid a decent wage and tipping is little more than rounding up.

      • ARP says:

        I prefer the UK model, which is roughly 10%. To me that’s a good balance between incentives and wages. Besides, $5 on a $50 meal doesn’t “feel” that bad.

    • outis says:

      Generally speaking the main reason a server wouldn’t want the tip on a CC is they HAVE to report it, as opposed to cash which can just be pocketed.

      • Mighty914 says:

        Although cash is usually under reported, they do have to report in some form…it’s not directly pocketed.

  6. tinmanx says:

    I’ve been going to the “no tip” restaurants in the Chinese neighborhoods. They still serve you, but you don’t pay tips. The prices are not any higher either, and it’s like an automatic 15% discount. It’s not top notch service, and if your picky, don’t bother with these places.

    • pecan 3.14159265 says:

      Are these Chinese restaurants? It’s odd that they would have a “no tips” policy, unless the restaurant was trying to just give you mediocre service. People probably only turn down more money if it means they have to do less work.

      • Happy Tinfoil Cat says:

        As a member of a family with several Chinese restaurants, I’d say that the “no tipping” sign is to make customers feel more relaxed. The tension of having a moral obligation to freely dish out gratuities is annoying. Most of the Chinese restaurants I know of are family run and have no issues about splitting up the tips to those who earn them. The one case I know of where the hostess kept all the tips, went out of business, mostly as a result of her attitude.

      • tinmanx says:

        They’re no five star restaurants. But if you just want to grab a quick lunch or dinner, those places are great. These places are just about food, they’ll take your order a minute after you sit down, and you get your food in under 5 minutes. When your ready to pay, you go up to the cash register to pay.

    • Outrun1986 says:

      The tension of having to tip to people of another culture is another problem. That or complaints about the bill going up 20% on a small Chinese lunch which doesn’t take too much effort to prepare and serve. If their prices are lower and they don’t accept tips then they have the advantage of lower prices over the sandwich place next door where you have to pay 20% more for lunch than you would at the Chinese place.

      The Chinese places here are usually family run and not owned by a chain so if they want to stay in business they have to give at least decent service as we have MANY Chinese places here so there is quite a bit of competition. With that being said I have had nothing but exceptional service from a couple of the Chinese places here. Friendly staff, family owned which means no corporate policies and they will fix problems in a heartbeat if there are any problems.

    • ChuckECheese says:

      Sounds like Pei Wei.

  7. flyingember says:

    fundamentally the problem is that tips have become a way for restaurants to not pay the entire wage to someone. tipping should be voluntary and have nothing to do with that person’s wage.

    first, change the minimum wage to pay food service the same as everyone else.

    second, the restaurant should charge the amount for their meals that lets them hire and pay people who give a certain level of service. if you don’t give this level of service you lose your job. the new cost of the meal includes what we think of as a tip for baseline service.

    tipping thus becomes something for employees who go above and beyond. you can choose if your expectations were met. if they were you can tip to what you like. if they weren’t you bring up the issue with management. the problem may have nothing to do with your server. it could be the kitchen messing around. why penalize someone who may or may not be at fault for your problem? take it straight to the people who will eat the loss and let them sort it out.

    • teke367 says:

      Part of the problem is that not only do restaurants not pay minimum wage, its also that servers are accustomed to making more than minimum wage. When I waited, an average week would get me $15/hour in NJ (probably higher if you discount weeks that were dead when it snowed, etc).

      Besides saving the restaurant the hassle of paying servers their entire wage, it also provides the flexibility for them to staff for slow shits (like most lunches, or Mondays, etc). For $2.18 an hour, its not that big a deal if they have an extra lunch person scheduled, for $15, I’d suspect you’d see a lot of understaffed restaurants, and artificial wait times until the restaurants got used to it.

      I also think low wages also serve a purpose for a restaurant as it makes it difficult for servers to unionize. I’d suspect you’d see a lot more union’d restaurants if there were higher wages, which would lead to even higher wages (as a server, your only raise comes when the menu prices increase).

      • Loias supports harsher punishments against corporations says:

        Your last comment “(as a server, your only raise comes when the menu prices increase)” got me thinking.

        That may be the most accurate way to increase salaries. When cost of living increases, receive an automatic pay increase. Obviously, merit increases are needed as well for experience, but it seems an accurate way to function.

    • frank64 says:

      But I think the wait staff actually does better, the tip pay for most probably is better than they would normally get, this means higher quality servers – and that helps us customers and the owners.

      The owners get reduced cost during slow periods. This means when it does get busy we the customers are more likely to have waitresses to be there for us. If scheduling was important to the bottom line, it may be like going to a super market during a slow period and finding that a small rush means the one check out is backed up.

      • frank64 says:

        You see how hard the waitstaff works when it is busy? It really is not a great job as far as quality of life, hours, etc. It would be difficult for the restaurants to pay that much, tipping might not be the best system, but it seems better than the alternatives.

    • Chaosium says:

      “fundamentally the problem is that tips have become a way for restaurants to not pay the entire wage to someone. tipping should be voluntary and have nothing to do with that person’s wage.

      first, change the minimum wage to pay food service the same as everyone else.

      second, the restaurant should charge the amount for their meals that lets them hire and pay people who give a certain level of service. if you don’t give this level of service you lose your job. the new cost of the meal includes what we think of as a tip for baseline service.

      tipping thus becomes something for employees who go above and beyond.”

      The only realistic way for this to happen would be to call out the unnecessary tipping and prevent people from tipping in general. Otherwise we’re back to the same tipping as necessary habits.

  8. sufreak says:

    In my experience, I got that night for CC tips. But the big difference between cash and CC tips is the taxation. You are automatically taxed 10% of your total bill to account for tips income. This balances between the tippers who tip nice and those who don’t tip at all.

    If you get a 25% tip on credit card, that full amount is taxed. If you get 25% tip in cash, only 10% is taxed automatically. You have to claim more.

    This is several years back..so it may be different now.

    • teke367 says:

      It probably depends on the restaurant, but that’s how it worked at Red Lobster just two years ago. When you clocked out, you were asked for your tips, and the computer had a suggestion. That suggestion was all of your credit card tips, plus 10% of your cash bills. You could claim more, but you could also lower that amount (leaving the possibility of getting less than 10% total on your cash tables).

    • Tim says:

      I’m confused. Are you talking about income tax or the customer paying sales tax?

      If it’s income tax, you’re supposed to report all tips to the IRS and pay income tax, just like any other income, on tips above a certain amount. Yes, it’s obviously easier to track compliance if you aren’t paying income tax on credit card tips, but you’re supposed to pay it on all tips.

      • coren says:

        They’re saying that if you tip in cash for 25 percent, people could avoid their taxes and act as if you only paid a 10 percent (or 8 percent, I’ve heard it both ways) tip.

        I think.

  9. frank64 says:

    Tipping works pretty well for all concerned most of the time. It reduces the risk of cost of labor for the restaurant. In slow times they are not paying (much) for the help to sit around, and it adds to the motivation of the wait staff, because good service means more money for them. For the waitstaff they end up getting paid more than they would for their level of skill. I am not saying they don’t work hard, and their isn’t skill involved, just that if they got paid by the hour they would not get the same hourly rate.

    It gives customers some feeling of control, but it also allows for cheapskates to rationalize not paying for a service. I think it kind of hides the true cost of the bill, because it is not stated. The bill will look much bigger if it included 20% more and might change the decisions about whether to order the desert or second drink if the total amount were right there in black and white.

    I never thought of the sales tax before. It does save it, kind of a loophole I am not sure if the states thought of.

    • carlogesualdo says:

      I actually agree with this, and it underscores my real objection to tipping these days: staff who make tip-level wages (something like $2 and change per hour last I heard) having to share tips with everyone else who makes at least the normal legal minimum wage. If I feel like I should tip because my waiter makes below minimum wage, how do I know he’s not being forced to share the tip I give him with the dishwasher and the cook (because they’re behind the scenes and geez, why shouldn’t they get to share in the glory of tips?) who make $7.67 an hour? Because believe me, I am a reluctant tipper – I would much prefer that all employees get at least the standard minimum wage and I don’t pay extra for service.

  10. Foot_Note says:

    Guess Mario Battalie (sp) will be unhappy, as he hordes his employees tips

    • DarthCoven says:

      As mentioned in the article…

    • O2C says:

      Actually I suspect he’ll be very happy with this law change as it codifies many things he was doing.

      1) If you tip with credit card, the restaurant can withhold a percentage corresponding to the CC transaction fee.

      2) You can define pooled tips, with different percentages going to different positions.

      I suppose the only difference is that he’ll have to label his “service charge” on banquets as an administrative fee or something else to make sure it can’t be interpreted as a gratuity of any sort.

      Disclaimer: IANAL. I have no affiliation with Batali nor any restauranteur or the like. I’m not in the food service industry.

      • Chaosium says:

        “Actually I suspect he’ll be very happy with this law change as it codifies many things he was doing.”

        No, it doesn’t. He was allocating the money to managers, which this strictly bans.

    • tr41nwr3ck says:

      Hoards, not hordes.

  11. Ocyrus says:

    Or you can just learn to cook for yourself and avoid all this hassle…
    The best meals are ones that you make for yourself, but then again… most Americans are too lazy…

    • Happy Tinfoil Cat says:

      No we are not lazy, we are just horrible cooks ;^)

    • Hi_Hello says:

      There are times when going out to eat is just easier…
      especially if it’s a gathering of friends which is too large for the table at either house and too small to have a ‘party’.

      or some stuff not worth spending days making. Stuff I can’t make or don’t have time to make, I order and pick up my food to avoid tipping.

    • veronykah says:

      Um, not true. I can cook and can make some AMAZING food, but the best things I’ve ever had were not cooked by me. Perhaps you should try some better restaurants.

      • Mom says:

        Or maybe it’s that Ocyrus cooks better than you do.

        • Chaosium says:

          No, I doubt it. I cook all the time for myself and do catering for others, but I enjoy going out to eat now and then. He sounds like a fussy eater.

    • Chaosium says:

      “Or you can just learn to cook for yourself and avoid all this hassle…
      The best meals are ones that you make for yourself, but then again… most Americans are too lazy…”

      Most people from wherever the hell Ocyrus comes from are terrible chefs.

    • coren says:

      Yeah, cuz going home (20 minutes from work in no traffic) on an hour break is totally my best option to get food.

    • Telekinesis123 says:

      Wow nice bigoted comment.

  12. shufflemoomin says:

    I’ll tip if a server gives me service above and beyond. Otherwise, I’m not paying the wages of someone else’s employee.

    • coren says:

      So you dont go out to eat, buy things at the store, or really anything ever?

    • Mom says:

      I suppose you can do that if you’re still living with your parents, because they pay for everything. In the real world, anytime we spend money, we’re paying somebody’s wages.

    • Chaosium says:

      “Otherwise, I’m not paying the wages of someone else’s employee.”

      Everything you do pays the wages of someone else’s employee, are you mentally deficient?

  13. erinpac says:

    Don’t suppose “automatic gratuities on bills that sound like they’re tips but then actually pocket the money themselves” includes ‘delivery’ fees?

  14. stevied says:

    Sounds like a good law in that it defines how tips are distributed and to whom.

    This all be good.

    I have always had a suspicion about a couple local restuarants with really, really high turnover of the wait staff that management was dipping into the tip pool. This should stop that crap if it was indeed happening. Of course it does little to correct the problem of management dipping something into the waitstaff…. but then that is a matter for the EEOC.

  15. bluline says:

    Tipping based as a percentage of the check is often bogus, in my opinion. I’ve seen wait staff bust their butts a lot more on a $50 check than I have on a $200 one. Perhaps a flat fee service charge would be in order.

    • msbask says:

      I could not agree more. Why am I tipping more for a waiter to bring me a steak, then to bring me pasta? The busboy brings me water, the waiter takes my order and carries the plate, the chef cooks the food, the busboy cleans the table. Remind me again why I’m tipping the waiter?

      If anything, I should be tipping the chef more or less depending on how complicated and precise my food needs to be…. and tipping the busboy more or less depending on how much water I consumed and how much of a mess I left at the table.

      • coren says:

        The busboy does very little of the things you mentioned most places I go to.

      • Chaosium says:

        “Remind me again why I’m tipping the waiter?”

        Because the waiter is trained to know the menu, wine list, bar, etc. generally. Hosts do a lot of work as well and fill in for other duties, but they also do not make as much as servers because they are untrained. Dishwashers do a TON of work, but are either make minimum wage or are undocumented and make even less off the books.

    • Southern says:

      Agreed, and mirrors what I commented on below. Just because the cost of a steak in one restaurant is $75, and $15 in another, the waitstaff still do the exact same amount of “Work” in bringing that food to your table.

      The quality (and price) of the FOOD should has no direct correlation to the quality of the WAITSTAFF, or the tip therein.

  16. Papa Bear says:

    Nothing in this law says you have to tip if you don’t want to. All it says is that the owner of the restaurant can take a credit against tips instead of paying full minimum wage and that the owner can not keep any part of any money designated as a tip.

    Many restaurants do not turn over tips if tab was paid for with a credit card. This is a very common practice and has actually been getting worse rather than better. There are also restaurants which require tip sharing in which disproportionate amounts of tips get paid to kitchen staff who are usually far better paid then wait-staff. Another problem with tip sharing is that bad servers are related the same as good servers and there is no incentive to perform.

    There was a time in the restaurant business in which waiters worked for nothing but tips and actually legally were forced to kick back a percentage to the restaurant. This has developed into the current situation, which is far more protection for the server.

    My personal belief is to eliminate tips and pay the wait-staff minimum wage or preferably higher, and then pay a percentage of the ticket as a commission. I worked at a country club that did this and service was second to none and sales were awesome. The managers went to this method because of high turnover and poor service. It fixed that and then some.

    • Mom says:

      Kitchen staff paid better than the wait staff???? Hahahahahaha…..

    • Chaosium says:

      “Nothing in this law says you have to tip if you don’t want to”
      It just makes you an asshole.

      “Many restaurants do not turn over tips if tab was paid for with a credit card”
      This is a also a lie, or you seriously have no clue what you’re talking about.

      • Southern says:

        So disagreement with an opinion calls for personal attacks, Chaosium?

        • Chaosium says:

          “My personal belief is to eliminate tips and pay the wait-staff minimum wage or preferably higher, and then pay a percentage of the ticket as a commission”
          Nah, I mean the not tipping would.

          I agree with his statement- “My personal belief is to eliminate tips and pay the wait-staff minimum wage or preferably higher, and then pay a percentage of the ticket as a commission”.

  17. rmorin says:

    This is just establishing a fail safe so that non-directly food service workers do not get tips that are not likely intended for them anyway. The headline is pretty misleading.

  18. td45 says:

    i just got back from a 2 week vacation in Spain and can say that I have never had worse service in my life. I frequented all types of restaurants ranging from cheap, midrange, and expensive while I was there and ate in 4 different cities all over the country therefore I think it is safe to say the bad service was not an isolated experience. Even at the upscale restaurants, it took longer than I was use to in the states to A) have someone take my order B)bring me bread (which actually is automatically provided but you have to pay for it… you can refuse it and not have to pay for it) and C) bring me my check. At cheaper places and even midrange places, I had to get up and ask for silverware and ketchup since they forgot several times. On several different occasions they served our food at different times to our group. I almost appreciated the upsell in the US on drinks since in Spain they rarely came by and asked if you needed anything or another drink.

    Having worked one summer as a waiter, I understand what it is like to earn tips and I always tip at least 20% and still tip 10% for subpar service. I was also a horrible waiter so I understand that it takes a certain skill set to be good at it. Has nothing to do with smarts, but rather personality I think.

    In conclusion, I want to stick with our tipping service. It weeds out the bad ones (like me) and rewards the good ones.

    I should note though that while other places in Europe that I have been to (Ireland, UK, Germany, Czech Rep. Hungary) were all not as bad in terms of service as Spain, I think it was customary to tip 5-10% in those places whereas in Spain you could just round up to the next euro or not leave any tip.

  19. Southern says:

    Honestly, I don’t have a problem with “Tipping”, I have a problem with “20% of the total bill.” (and some waitstaff are starting to bitch if they don’t get 25%)

    Example A: I take my family out to a fancy restaurant, where dinners are (around) $50 each. Total Bill, ~$200. Waiter takes our order, delivers our food, then checks on us periodically to keep our drinks full. We spend 45 minutes to 1 hour in the restaurant,

    Example B: I take my family out to a FAMILY resturant, where dinners are (around) $15 each. Total Bill, $60. Waiter takes our order, delivers our food, then checks on us periodically to keep our drinks full. We spend 45 minutes to 1 hour in the restaurant.

    In the above examples, why would Waiter (a) be worth a $40 tip, as opposed to Waiter (b), who does the exact same work, be worth a $12 tip?

    $12 an hour is a pretty damn good wage for a job that doesn’t require a PhD, College Degree, or even a high school diploma.

    • Chaosium says:

      Expecting nothing more than a 12/hr wage for a “fancy restaurant” is arrogance on your end.

      • Southern says:

        Oh? What does the waitstaff have to do with the overall ambience of the restaurant, and the cost of the food?

        Let’s take this to an extreme, then. Supposedly, the most “expensive” restaurant in the world is Aragawa, in Tokyo Japan Dinning where dining for ONE person STARTS at $370. http://www.forbes.com/2006/10/11/food-restaurants-dining-life-travel-cx_sb_1012table.html

        Are you telling me that just because you happen to be a waiter at that restaurant, that you deserve a $75 tip PER PERSON? (Granted, if you can afford a $370 meal, you can probably afford the tip, but I’m just sayin’ ☺)

        Personally, I just don’t think that a tip has anything to do with the price of the MEAL, but the service of the STAFF.. And tipping based on the price of the MEAL is simply the “easiest” way to calculate your tip.

        I’d be much more understanding of a $300 tip on that college group that used all those Groupons then I would be to a waiter who just happens to work at that Japanese restaurant and simply serves a family of 4.

        • Southern says:

          Or to an even MORE ridiculous extreme.

          There’s a restaurant in Las Vegas, in the Mandalay Bay Resort & Casino called Fleur de Lys.

          They have a hamburger there that costs $5,000.

          Yes, $5,000. http://most-expensive.net/hamburger or http://www.highstakesliving.com/the-5000-burger.html

          Are you really going to tell me that the waiter there is going to deserve a $1,000 tip for bringing you a hamburger?

          Answer honestly now.

          • Mom says:

            The average check at that restaurant is $50 (from their website). I don’t think they sell too many of those burgers.

            • Southern says:

              I’m sure they don’t, Mom, and it’s just an advertising gimmik.. But just for the sake of argument, let’s say that Bill Gates gets a hankerin for a $5,000 burger. I’m sure he’d be more than happy to pay a $1,000 tip, but my question is, does he deserve it?

              Personally, I say no. Just because the restaurant happens to sell a $5,000 burger, I don’t feel that waiter would deserve any more of a tip than if were to serve a $10 burger.

              Just my 2¢

              • Chaosium says:

                “But just for the sake of argument, let’s say that Bill Gates gets a hankerin for a $5,000 burger. I’m sure he’d be more than happy to pay a $1,000 tip, but my question is, does he deserve it?”

                Yes. Plenty of people work their way into high-paying jobs that require a lot less work than a career in waiting tables.

                And also, nobody ever called Bill Gates a poor tipper. Donald Trump maybe, but he’s a cheapskate and a poor businessman in all aspects of life.

              • Chaosium says:

                And really, if that’s your classless attitude, just stick to the fast food you’re most comfortable with.

          • Happy Tinfoil Cat says:

            You know what, if he is with 5 other people there may be a mandatory 18% gratuity. And tax on that ‘gratuity’.

          • Chaosium says:

            “Are you really going to tell me that the waiter there is going to deserve a $1,000 tip for bringing you a hamburger?

            Answer honestly now. “

            Yes, if you’re stupid enough to buy it.

            • Southern says:

              So you disagree with opinions with name calling & personal attacks. Clearly, having an exchange of opinions and ideas with you will be a frustrating experience, and I shall not participate.

              • Chaosium says:

                “So you disagree with opinions with name calling & personal attacks. Clearly, having an exchange of opinions and ideas with you will be a frustrating experience, and I shall not participate. “

                Get the vapors if you wish, you’re implying that the person who buys a 5000$ gold-encrusted burger is dumb, and I’m agreeing. A tip is directly proportional to the ticket.

    • Mom says:

      Since you don’t seem to have ever gone to a “fancy” restaurant….

      “Fancy” restaurants take more than 45 minutes. Between the multiple courses, drinks, etc, I don’t think I’ve ever been to a restaurant where the bill was $50 per person where it took less than 2 hours. That’s not poor service, that’s on purpose. Dining in that kind of place is more of an event than it is at Claim Jumper. Those kinds of places will only have one or two seatings in an evening, not a new group of people every 45 minutes, so the waiters have to make their whole evening’s tips from two seatings per table, not 4-6. They also have to share tips with more people. In addition to the busboys, there are guys that just run around with bread and water; the wine steward with the wine, people who just deliver the food, and so on. The other thing is that waiters in “fancy” places are generally more skilled than the waiter at claim jumper. They have been in the business awhile, usually working their way up from cheaper places. They know a lot more about food and wine, they are given more autonomy do do what’s needed to keep the diner happy, and this is their career choice. They would rightly expect to make more money than a waiter at Claim Jumper.

      So, yeah, the $40 tip is appropriate on a $200 bill.

      • Southern says:

        That may be true in some cases, I won’t deny it – but there are also “fancy” restaurants, at least here in the Houston area, that they definitely have high customer turnover in, and the waiters there do wait 5-6 tables each.. Papas Steakhouse comes to mind.

        http://pappaspizza.net/images/dyn/menus/menu_390.pdf

        $80 for Lobster, $47 for a steak, and yes, we’ve been there several times. Even with a $500 tab, I’ve always tipped 20% because I know it’s “expected”. The waitstaff there is very pleasant and attentive, but honestly they don’t “work” any harder than the waitstaff at the Olive Garden across the street does.

        As I said, I don’t *mind* tipping, especially for good service – I just don’t think there should be a direct correlation in the price of the food to the amount of the tip.

    • Telekinesis123 says:

      Waitresses and waiters are some of the most self-righteous, self-entitled and overly dramatic individuals in any line of work.

      • Chaosium says:

        “Waitresses and waiters are some of the most self-righteous, self-entitled and overly dramatic individuals in any line of work.”

        Dramatic, I’ll give you. Complaining, I’ll give you. But it is a fairly demanding job, and to say that workers at top-end restaurants in large cities don’t deserve more than 12$/hr is the most entitled and assholish thing in the thread by far. Far more than any server I’ve ever met (and I’ve met some unpleasant ones.)

  20. Telekinesis123 says:

    They can’t regulate anything unless you voluntarily give them power over you, all statutory ‘power’ is derived from contract fraud and assumption, whereby they assume you accept the contract by ‘silence by acquiescence’ and ‘ignorance of the law is no excuse’. You have a right to give gifts and receive them, if they redefine what a ‘gift’ aka ‘tip’ is in their labor code and tax law, you accepted to contract with them by giving them your SIN or SSN, then well you’ve already given up your rights, and they can do whatever they want.

  21. Shadist says:

    I really wish this had been in effect when I was a server.

    I worked in a banquet hall, usually did weddings and that sort of thing. Said hall was part of a country club complete with golf.

    The time that springs to mind was a day with a group of doctors who made the day of it. They started with breakfast, then golf, then lunch, then more golf, and a not so sensable dinner. The bar tab alone was 3k.

    I happened to be standing near the bar when the manager and the head of said group of doctors were setteling the tab. The doctor asked if the servers get the tip and the manager assured him that we did. (we did not)

    The guy paid over twenty-five percent on the entire bill since he was amazed at the service we had given him.

    Later that night we asked about the tip and were told that we were not going to get anything of it as we were paid a higher wage (over minimum wage) to offset the loss of tips.

    After figuring out how much money I had just lost out on I quit.

    • Happy Tinfoil Cat says:

      I’d find that doctor and let him know, and copy the manager and owner. Explain to the doc that the service probably won’t be the same next time, as the personnel had just changed.

    • Chaosium says:

      “Later that night we asked about the tip and were told that we were not going to get anything of it as we were paid a higher wage (over minimum wage) to offset the loss of tips.”

      Then tips should specifically be called out as NOT NECESSARY for the clientele. How awful.

      • Shadist says:

        In retrospect I wonder who exactly did get that money, the buisness or the managers.

        • Chaosium says:

          “In retrospect I wonder who exactly did get that money, the buisness or the managers.”

          Probably “skimmed” by the manager on duty.

  22. dilbert69 says:

    If you’re an employee who receives tips, you can keep a journal of the date and amount of each check and the amount of the tip received, and the IRS will accept it if it looks genuine. If it looks like you made it all up on April 14 (pen marks all the same color and thickness, etc.), they’ll reject it. So if your employer reports 8%, and your journal shows you made less, you can report the lesser amount and show the journal if audited. Of course, if your journal shows more than 8%, you have to report that higher amount. The IRS might be fussy if you have journals for 2008 and 2010, but none for 2009 because that year the journal showed more than 8%. Consistency is the key here.

    • Chaosium says:

      Generally that’s not an issue, because (as of ~10 years ago when I actually did this) you mark down all cash tips in the POS system when you go off shift. They don’t have to be accurate, but you mark them off as you go every shift, and they’re automatically calculated for tax purposes for all employees.

  23. YokoOhNo says:

    In idaho the bar simply reports 15% of your gross sales as your tip…for reporting purposes.

    • Chaosium says:

      When I was a server in florida, they reported a minimum of 10% regardless of performance, and either you reported more, or you paid taxes and tipout regardless and spoke to the manager to be comped back enough to make minimum wage.

  24. JonBoy470 says:

    Someone here hasn’t done their homework. The Department of Labor http://www.dol.gov/elaws/faq/esa/flsa/002.htm says that employers whose employees receive tips are only required to pay $2.13/hr. so long as the employee retains all tips, receives at least $30/month in tips, and the tips plus wages equates to at least minimum wage. The emplyer doesn’t just “keep” the first $204.

  25. Dollie says:

    I don’t like paying for snarky waitstaff. Snark should be free. Order to go. Voilà! No tip necessary.

    • Chaosium says:

      “I don’t like paying for snarky waitstaff. Snark should be free. Order to go. Voilà! No tip necessary.”

      Also a reasonable solution!