Wages, Service Charges and Tips. Employees vs Salt Bae

Be Cafeful when tipping

Employees argued that a service charge at the Nurs-Et Miami should not have covered their wages. A court disagreed.

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If Salt Bae has taught us one thing, it's how to sprinkle salt on steak in dramatic fashion. If Salt Bae has taught us two things, it's how to charge exorbitant prices for what's widely described as average food. But if Salt Bae has taught us three things, this might actually be the most important one: a service charge is not necessarily a tip. And if you're paying a service charge, that fee can be used as part of an employee's wages and does not entirely have to be given to staff on top of their normal pay.

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This lesson comes courtesy of the United States Court of Appeals for the 11th Circuit which on Friday upheld the decision of a Miami federal judge who ruled that an 18% "service charge" added to bills at the Nurs-Et Steakhouse in Miami – which is owned by Nusret Gokce, a.k.a. Salt Bae – was not a tip because it was not at the sole discretion of the customer.

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As the ruling states, "If the mandatory service charges are tips, federal law would generally prohibit restaurants from using the fees to pay minimum and overtime wages to employees. But if the charges are not tips, establishments may apply them toward employee wages."

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Clearly They are screwing the employees over on this. I know that if I see an 18% service charge on my bill I'm not tipping another 20% on top of that.

Using a service charge to cover the employees base wages shouldn't be legal.

A lot of people don't like Salt Bae. Dude and company seem shady as frick!