Restaurant Withholding Tips; Is it legal?

[DawnCt1]

One of my DSs friends works part time as a waitress. She depends upon her tips. Most people these days pay with credit/debit cards, so the tip is written into the bill. Up until now, they were able to cash out their tips from the credit card slip after the sale. The owner recently announced that they will not be receiving their tips each night but will have them included into their paychecks, minus the amount that the bus boys, etc will get. (They complained that the waitresses weren't "tipping out" enough). Is this legal? It seems that it is withholding funds that were intended for immediate distribution.

 

[Cool-Beans]

Legal and common.

And part of the reason why I try to always tip in cash.

 

[pepperw23]

I think it is legal. It does not sound fair though.

 

[barkley]

well, years ago when i was the bookkeeper for a restaurant we did the same with credit card tips. our reasoning was'nt for tipping out other people, it was to keep from having to constantly run to the bank for more cash (if everyone were to cash out from the register this would deplete our cash for transactions).

 

[DawnCt1]

Thank you everyone. CB, good reason to tip in cash!

 

[joshsmom]

Wow, I had no idea. I agree--good reason to tip in cash. I REALLY want the server to get it right away. Learn something new every day.

 

[rentayenta]

That sounds awful. Part of the fun of being a server was having that pocket full of cash each night.

We tip in cash too.

 

[bicker]

Definitely legal.

I'll still tip using credit cards.

 

[ajk912]

I have known a lot of places that do that. Charge tips go on your paycheck, and you get to keep cash tips in your pocket. It kind of works out though, you may walk home with $50 but it's nice to get a decent paycheck, too!

 

[Ohiodislover]

I've recently been trying to tip in cash. My nieces have both waitressed and bartended, and really hated it when people tipped on the credit cards because they had to wait. It's hard though. I rarely have cash on me.

My hairdresser, and nail salon don't except tips on credit cards, only cash.

 

[DawnCt1]

I've recently been trying to tip in cash. My nieces have both waitressed and bartended, and really hated it when people tipped on the credit cards because they had to wait. It's hard though. I rarely have cash on me.

My hairdresser, and nail salon don't except tips on credit cards, only cash.

I can certainly see making the effort to tip in cash, however, if some will not accept tips on a credit card, that attitude may easily inspire many people not to leave one, including myself.

 

[polineedyan]

charge tips are easily monitored by the restaurant. In my place of business, the company actually required us to 'tell the computer' how much cash tips we received as well, and this is based on what we have told the computer thru charge tips. So..lets say im clocking out at the end of the night, and the computer knows that I have made, lets say 100 bucks in charge tips, which is lets say 20% of my charge sales. I now have to tell the computer that I have made 20% of my cash sales as well. Which is not ALWAYS the case..Not totally fair, but really it is. A lot of people out there are falsifying income, because they get cash tips.
The minimum cash tips that I can tell the computer is 12% of my sales. In other words, lets say I sell $300 in food. I MUST claim 12% of that. EVEN IF I got stiffed on every sale.
Not really the answer for the op, but just my 2 cents..

 

[Keli]

In the end, management hurts themselves and their employees with policies like this IMHO.
Because it causes people to not want to leave a big tip for their waitress since they figure she's probably not going to see it, or much of it anyway. And a restaurant that doesn't earn big enough tips for their wait staff will have a hard time keeping the best wait staff because they (wait staff) will just bide their time and jump to a better employer as soon as they can.
And word gets out because their employees/former employees will gripe about the policy to their friends and family. I can tell you the tipping policies a few of the nicer restaurants in our area since either my dd worked there in the past or one of her friends did.

 

[barkley]

I've recently been trying to tip in cash. My nieces have both waitressed and bartended, and really hated it when people tipped on the credit cards because they had to wait. It's hard though. I rarely have cash on me.

My hairdresser, and nail salon don't except tips on credit cards, only cash.

on the flip side i hate it when i use a credit or debit card and the restaurants and bars have their approval systems set up such that it automaticaly puts a pending charge or debit on not only what the meal is but a flat rate that they've determined i will be tipping (we've seen it at as high as 20%). so despite what i've indicated as the tip, until they actualy do the formal run of the charges based on what's i've written on the slip-i have a hold on what can be more than i've indicated or a duplication of what we've handed over in cash (not uncommon for a couple of couples to go out and one set pays the bill-the other covers the tip).

we've discontinued using some restaurants because we ended up having to contest over charges on our credit card (which is a hassle) or had to bring in our copies of the slips to the local bank to get funds reversed when whoever was supposed to be reviewing the actual charge slips either did'nt review them close enough or did'nt notice that despite what we had written on the slip in the tip indicator their wait staff was'nt correcting the entry to reflect a lower than their set percentage amount

 

[OrlandoMike]

minus the amount that the bus boys, etc will get. (They complained that the waitresses weren't "tipping out" enough).

This would not fly with me! I tip my support staff according to the service the provide me! If a server assistant spends half the shift out on the loading dock smoking, they sure aint going to get the tip I give the the server assistant who is working their tail off for me!

 

[cmwade77]

This sounds perfectly legal and 110% fair:

Let's look at what everyone does:
Greeters:
Seats the guest
Usually takes their initial drink order and relays it to the server

Busboys:
Clears the table (sometimes even during the meals)
Sets that tables (at most restaurants)
At some restaurants provides the refills (especially for water)
At some locations brings the food out if the server is too busy.

Servers:
Takes the order
Puts in with the kitchen
Provides refills (when not done by the busboys)
Brings the food out (when not done by the busboys, etc.)

Now each of these people deserve tips accordingly, it would be too much for the guest to figure out how to divide it out, as there may be other things going on behind the scenes that are being done, such as the server knows an order is wrong and is getting the chef to fix it, etc. that the guest never knows about.

In addition, including the tip in the check ensures that it is taxed appropriately, something that rarely happens with tips when left in cash (yes, I know there are those who are honest abut it, but a lot aren't), yes I think we spend too much in taxes as it is, but I do think everyone should be obliged to pay their fair share, if someone that is making just as much as I do has to pay 50% less taxes because their tips are in cash, then that isn't fair.

Just my two cents on the matter, I truly think that even cash tips should all be collected and included in the pay check. Although, if I were running a restaurant, I would simply pay my servers a good wage (I would try to figure out what good servers at comparable restaurants make per hour, after tips and pay a little above that and not allow the customers to leave tips, explaining that they are not needed here, if they want to let the server know they did a good job, either tell them or better still leave a little survey for them (the latter part would work for a bad job as well). My bet is by doing that and having really good food at reasonable prices, I would make a killing and always be busy, I don't think people truly like the idea of leaving tips and think that if just one restaurant stepped out of the box, that others would see it works and follow suit.

 

[OrlandoMike]

Greeters are usually paid a regular wage, Servers, Bartenders and Server Assistants are paid less than minimum wage. It's assumed that they will be getting tips to compensate for the less than minimum wage.

BTW...

The term BusBOY went out the door years ago.....

 

[Planogirl]

I've known of bartenders that get good wages. I'm not sure if they're on the list of those that get paid the lower wages.

 

[rie'smom]

I'm going to start tipping using cash. I never realized that the wait staff might have to wait for their money.

 

[Free4Life11]

I honestly don't get the tipping. How do these people keep track of it for taxes? I don't believe it....I think a lot of this money never gets reported to the IRS. Because of that I think all tips should be added to the paycheck and treated like income at any other job, with taxes deducted, etc. I get paid once every two weeks and I can wait for my money, so can a waiter. I just don't do cash anymore!

And if they can't wait they can...."Check Into Cash" ::make checkmark sign with finger::