What Counts as a Tip for Employees in California? Part I

What Counts as a Tip for Employees in California Part I

Some restaurants tack a “mandatory service charge” on to bills for large tables of diners, private parties, or catered events. Under federal and California law, this isn’t considered a tip.

Even if the customer thinks that money is going to you and doesn’t leave anything extra on the table, your employer can keep any money designated as a “service charge.”

The law generally considers this part of the contract between the patron and the establishment, not a voluntary acknowledgment of good service by an employee. Many employers give at least part of these service charges to employees, but that’s the employer’s choice: Employees have no legal right to that money.

David Payab, Esq. from The Law Offices of Payab & Associates can be reached @ (800) 401-4466 or by visiting http://payablaw.com

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s