Non-profit

[h&h]

This is in California.

I work at a non-profit hotel and conference center.

In the dining department, we do a lot of private parties like banquets, weddings, and casual reserved dinners. All of them are charged for a percentage of gratuity for our service, but none of this money goes back to the servers, hosts, or everyone that works in the events.

The darker side is that the consumers think that the money goes to us and possibly expects the service that they've paid for.

We are on different wages because of experience there.
There are a handful of full time positions there that has benefits with yearly raise.

The company's argument to everything we complain about is that they are "non-profit."
Over the past two years, it has been doing better than ever, and so, is there a limit to the "amount" of "profit" that they could possibly go over in order to give us the gratuity that we work so hard for?

There are a several solutions that I have thought of:
- A better hourly pay.
- Cannot label the gratuity as gratuity to us. Might as well label it "donations."
- Simply gives us the gratuity.

What other solutions might there be?
Is there a department I could contact?

Please advice!
Or if need more information, please do ask!

 

[OHRoadwarrior]

You are entitled to earn the minimum wage for your area. A non profit hotel/conference center??? Was this like a Doris Day thing or something?

 

[h&h]

You are entitled to earn the minimum wage for your area. A non profit hotel/conference center??? Was this like a Doris Day thing or something?

Thank you for your input.
Yes, but the focus is more on the gratuity from the guests. I have no problem with the minimum wage.
The conference center and hotel is funded by a non-profit organization.

 

[Zigner]

Thank you for your input.
Yes, but the focus is more on the gratuity from the guests. I have no problem with the minimum wage.
The conference center and hotel is funded by a non-profit organization.

Why do you feel that you are legally entitled to it?

 

[h&h]

Why do you feel that you are legally entitled to it?

I was only wondering if the employees are entitled to it or not.

The guests who are paying the price don't know that it is not given to us. And I'm talking about the gratuity.

If there are no solutions, please do not reply to thread.

 

[Silverplum]

I was only wondering if the employees are entitled to it or not.

The guests who are paying the price don't know that it is not given to us. And I'm talking about the gratuity.

If there are no solutions, please do not reply to thread.

Alrighty, then.

 

[Silverplum]

This is in California.

I work at a non-profit hotel and conference center.

In the dining department, we do a lot of private parties like banquets, weddings, and casual reserved dinners. All of them are charged for a percentage of gratuity for our service, but none of this money goes back to the servers, hosts, or everyone that works in the events.

The darker side is that the consumers think that the money goes to us and possibly expects the service that they've paid for.

We are on different wages because of experience there.
There are a handful of full time positions there that has benefits with yearly raise.

The company's argument to everything we complain about is that they are "non-profit."
Over the past two years, it has been doing better than ever, and so, is there a limit to the "amount" of "profit" that they could possibly go over in order to give us the gratuity that we work so hard for?

There are a several solutions that I have thought of:
- A better hourly pay.
- Cannot label the gratuity as gratuity to us. Might as well label it "donations."
- Simply gives us the gratuity.

What other solutions might there be?
Is there a department I could contact?

Please advice!
Or if need more information, please do ask!

(For information.)

 

[OHRoadwarrior]

Lets go straight to the IRS Revenue Code. Such mandatory "tips" are classified as a service charge. The company simply needs to properly record disbursement of the service charge to any employees included in it as wages.
http://www.irs.gov/irb/2012-26_IRB/ar07.html

 

[LdiJ]

Lets go straight to the IRS Revenue Code. Such mandatory "tips" are classified as a service charge. The company simply needs to properly record disbursement of the service charge to any employees included in it as wages.
http://www.irs.gov/irb/2012-26_IRB/ar07.html

I agree. However that doesn't make the OP's question a foolish one...or the OP's belief that the "gratuities" were tips that should have been disbursed to the servers a foolish idea either. NOR, the OP's belief that the customers would expect those gratuities to go to the servers/bus people/host people etc.

Under the IRS regs a server can be paid as little as 2.00 plus an hour as "wages" (sorry but off the top of my head I cannot remember the exact per hour amount). The rest of at least minimum wage can be made up via tips/gratuities, with the employer being obligated to bring it minimum wage if somehow tips make it fall below minimum wage.

Therefore, in a situation where all gratuities are automatic, as long as everybody is making minimum wage or better, there really is wiggle room for the establishment. The best employers will adopt a policy where the entire total of the automatic gratuities are divided between the servers/bus people/host people base on a formula based on fairness. The worst employers will use those automatic gratuities to cover all staff, including kitchen staff and others not normally involved in gratuities.

The staff normally included in gratuities has the right to choose to not work for those kinds of employers.