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re: Paying and tipping at a restaurant with a card
Posted on 5/19/13 at 2:42 pm to someoldhussy
Posted on 5/19/13 at 2:42 pm to someoldhussy
quote:
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 5/19/13 at 4:00 pm
2
Posted on 5/19/13 at 3:36 pm to J311slx
Is 100% legal in Louisiana to withhold processing fees on credit card tips. It's a new trend in the industry. Makes sense for operators because they are paying the fees on money they never actually see.
That being said, we don't withhold credit card fees from our servers. We do pay them credit tips biweekly, because they all preferred that method to taking tips home everyday.
That being said, we don't withhold credit card fees from our servers. We do pay them credit tips biweekly, because they all preferred that method to taking tips home everyday.
This post was edited on 5/19/13 at 3:39 pm
Posted on 5/20/13 at 7:28 am to J311slx
quote:
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.
But the business owner still has to fork out the processing fee for the money tipped to an employee. What would end up happening is the employer would just stop putting the line to allow credit card tips to be added, and the employee would just stop getting tips from people who didn't carry any cash in the restaurant.
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