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Barcrafty

Junior Member
A restaurant is charged a fee to use credit cards as a form of payment for business. Is it legal to then turn around and take money out of your employee's tips to off set that expense?
 


justalayman

Senior Member
State please.



But without that info: generally yes. The business can withhold the processing fee on the tip from the tip
Paid the employee. Otherwise the business would be paying part of the tip. Not fair to them.
 

FlyingRon

Senior Member
Federal law and most state law specifically allow the credit card fees that apply specifically to the tipped portion of the bill to be deducted. It has to be the actual percentage paid to the card processor. You can not just deduct some aribitrary fee as a "processing fee" for allowing the employees to take their tips from the credit card. That is federally illegal.
 

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