Where I work the card fee is taken out of servers tips. It isn't legal in every state though.
Not saying you're wrong but I can't see anyway this is legal. Cc fees are an agreement between the merchant and the credit card processors, not the processors and the merchants employees. Now maybe there is some fine print in the employment packet allowing this that the employee signed off on, but it sounds completely illegal.
What's withheld from a servers cc tips is completely dependent on the company though. The restaurant I work for now withholds 25% of cc tips to put towards taxes/put remainder on the server paycheck. The servers then tip out 1.25% of sales to busboys, 1.25% to bar, and .75% to server assistant. Once that's paid out they leave with 75% of cc and all cash tips.
This varies restaurant to restaurant but have never heard of servers tips going toward cc fees they incurred.
This post was edited on 5/19 at 4:00 pm