18% gratuity

[JennK2009]

Wisconsin

I am a tipped employee, with a basic wage of $3.50 and I claim all of my tips. My employer does add “make up tips” to my check on a pay period basis (every two weeks) if I do not make state minimum wage (just raised to 7.25)

My boss has asked me to work a banquet style dinner, but also informed me that I will not be receiving the added 18% gratuity. I am a good server and she knows that people generally tip me well, and thinks I will get tips on my own. She has not told me where this gratuity will go.

They have never set a policy on tipping (like the bartender or busser). While I know life isn’t fair and bosses have the upper hand, is this legal for her to keep the gratuity?

Thanks much – this is all new to meWhat is the name of your state (only U.S. law)?

 

[pattytx]

A fixed gratuity added to the bill by the establishment is not a "tip"; a tip is something that is freely given by the customer in the amount determined by the customer, even if that amount is zero.

All the law requires is that, on a workweek basis, the average rate of pay (inclusive of declared tips) is at least minimum wage.

Was that your question?

 

[JennK2009]

Thank you.

After some digging, I did find out that the 18% gratuity belongs to the establishment - it is NOT a tip. I think it is misleading to the general public, though. I think most people think they have "tipped" when a gratuity is added.

I do have one more question, though, regarding the make up tips. You mentioned that it should be done on a weekly basis. Ours our calculated on a two week basis. Is that the law or just "the norm?"

(It really makes no difference to me, but I like to know the law. It's the only bargaining chip I have, while negotiating with my bosses.)

 

[Mass_Shyster]

Thank you.

After some digging, I did find out that the 18% gratuity belongs to the establishment - it is NOT a tip. I think it is misleading to the general public, though. I think most people think they have "tipped" when a gratuity is added.

I do have one more question, though, regarding the make up tips. You mentioned that it should be done on a weekly basis. Ours our calculated on a two week basis. Is that the law or just "the norm?"

(It really makes no difference to me, but I like to know the law. It's the only bargaining chip I have, while negotiating with my bosses.)

I don't think it would be unreasonable to request that your boss calculate the make up tips for this event only, outside of the 'normal' calculation. As you stated, many of the guests will assume the 18% is going to you.

 

[pattytx]

Thank you.

I do have one more question, though, regarding the make up tips. You mentioned that it should be done on a weekly basis. Ours our calculated on a two week basis. Is that the law or just "the norm?"

The FLSA is basically geared toward "workweek" and the workweek is the basis of the majority of wage and hour laws.

 

[JennK2009]

Thank you both for helping clarify my questions.

Steve, I took your suggestion and we did agree to those terms - thank you for that. Actually, when all was said and done I shamed them into giving me the entire gratuity.

 

[pattytx]

Thank you both for helping clarify my questions.

Steve, I took your suggestion and we did agree to those terms - thank you for that. Actually, when all was said and done I shamed them into giving me the entire gratuity.

Wow, good result. Legally, they didn't have to do that.

 

[JennK2009]

Wow, good result. Legally, they didn't have to do that.

Legally?? Schmegally… It was the RIGHT thing to do.

By no means am I attacking you, pattytx, but I am very much attacking this legality.

WTF is this 18% gratuity for?? Six fresno containers to keep the food warm and 20# of ice to chill the salad bar?

Never – not once – have my group of “six or more” said, “Oh gee, what should we TIP?” We were simply happy that someone did the additional “gratuity” math for us, and we only had to try to divide the total by us "six or more.”

(At least, while the banks are screwing us, they give us a six-page letter in 4-point font, "giving notice", they are screwing us.)

Wow. Thank you VERY MUCH for enlightening me. I will spread the word.

 

[justalayman]

I'm on your side on this jenn. If I go to a restaurant and read "18% gratuity"., I would presume it goes to the waitstaff and I am sure I have stiffed a waitress or many due to this misunderstanding.

go to this site. Not even sure what it is but they are talking about the gratuity. All I read are of the understanding that the mandatory grat is the tip.

If a restaurant charges an 18% gratuity for a large group, is it customary to include a tip on top of that? | Tips On Bigger Tips

in fact, it is apparently a common misconception:

18% gratuity parties of or more - Google Search

I found nobody that realizes that the mandatory grat is not a tip other than a letter of clarification by the fed DOL stating that the mandatory grat is to be considered company receipts and not a tip to the employee.

 

[pattytx]

I gave you the legal answer. Doesn't have to mean I think it's fair, doesn't have to mean I like it. Service charges added to a bill are NOT tips, no matter which way you want to look at it, regardless of the "fact" that "nobody" realizes that except the DOL. The DOL makes the rules. Don't shoot the messenger.

 

[justalayman]

I don't think she was patty. Nor was I. As I presented, apparently this is a very misunderstood situation. I know I have stiffed waitresses due to this situations, unknowingly of course.

Now that you have enlightened us, I can promise it will happen no more.

 

[pattytx]

Now that you have enlightened us, I can promise it will happen no more.

Honestly, I think the person booking the group should ask. How much of this 18% gratuity goes to the servers? Then you can act accordingly.

 

[justalayman]

Honestly, I think the person booking the group should ask. How much of this 18% gratuity goes to the servers? Then you can act accordingly.

booking a group? You presume I have forethought enough to schedule an event?

Heck no, we just swoop in and hope for the best


you have a good point.

 

[ecmst12]

That would be my suggestion as well. Not ALL restaurants fail to give the servers any mandatory service charges, and you shouldn't have to tip twice as much for no reason.

Actually, if I asked the manager that question and was told anything other then "all of the gratuity goes to the server", I'd find another restaurant for my party.

 

[cbg]

Because of course the server is the only one who performed any kind of service for the customer. The bus staff, the cooks, the bar staff, the salad maker; they all sat in the back room and played cards all night while the server singlehandedly managed every aspect of the customer's care....