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Changes to Who Gets the Tip with New Law (It's not the server)
Posted on 7/8/25 at 8:22 pm
Posted on 7/8/25 at 8:22 pm
I saw this posted elsewhere
With the passage of the 7/4/25 bill, Louisiana law now treats mandatory gratuity (like the 20% auto-added for parties of 6 or more) as business revenue. The restaurant is not required to give any of it to the server. It can legally be used for credit card fees, payroll taxes, admin costs, or overhead.
Is this true? What will you do?
With the passage of the 7/4/25 bill, Louisiana law now treats mandatory gratuity (like the 20% auto-added for parties of 6 or more) as business revenue. The restaurant is not required to give any of it to the server. It can legally be used for credit card fees, payroll taxes, admin costs, or overhead.
Is this true? What will you do?
This post was edited on 7/8/25 at 9:28 pm
6
Posted on 7/8/25 at 8:48 pm to Stadium Rat
If it's true and employers abuse it, they will soon have staffing issues.
Posted on 7/8/25 at 9:26 pm to Stadium Rat
The BBB didn’t change the law regarding tips in LA. It only applies to mandatory gratuity. It applies to a “service fee” under LA law. Which means the restaurant must label it a service fee and not a tip for this to apply. It’s meant for large parties not your tip you leave if you and your wife dine out.
It’s been this way in LA for years and has nothing to do with the BBB.
It’s been this way in LA for years and has nothing to do with the BBB.
This post was edited on 7/8/25 at 9:29 pm
Posted on 7/8/25 at 9:48 pm to Stadium Rat
What does federal tax law have to do with Louisiana tax law?
Posted on 7/8/25 at 9:58 pm to Mingo Was His NameO
quote:It's not clear, but maybe the state has to have enabling legislation in place the way some states did with abortion restrictions. As soon as the federal legislation passes, the state law kicks in.
What does federal tax law have to do with Louisiana tax law?
Posted on 7/8/25 at 11:01 pm to Stadium Rat
quote:
Is this true? What will you do?
will not eat there.
Posted on 7/9/25 at 9:36 am to Stadium Rat
If I am paying a forced gratuity that is the end of my responsibility for tipping.
Posted on 7/10/25 at 9:35 am to Stadium Rat
As a former server (waiter), those "mandatory" gratuities are not truly mandatory in that the waiter or manager can usually choose to add or remove it. I worked at many places we had to have a manager add it. Other places you could request the manager remove it.
I haven't used a point of service in awhile, but I'm sure they are basically the same.
My point here is that waiters could simply ask the manager to remove the mandatory tip if this was a major issue.
But I'll say, taking out a percentage of the tip for CC fees was company policy at multiple places I have worked in the past many years ago. So that's by no means anything new.
I haven't used a point of service in awhile, but I'm sure they are basically the same.
My point here is that waiters could simply ask the manager to remove the mandatory tip if this was a major issue.
But I'll say, taking out a percentage of the tip for CC fees was company policy at multiple places I have worked in the past many years ago. So that's by no means anything new.
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