I just read an article (not in the local paper) about the ruling. I have to say, I disagree with the ruling and the restaurants. Technically, the ruling is probably correct but realistically it is wrong.
What the restaurant is saying:
- The service charge is not a tip, it is a charge to cover the wages of the employees. The law requires that the restaurant pay a minimum wage and the service charge is used to meet that minimum wage. If the customer desires to leave an extra gratuity (tip) for the server, they should do that.
What the customer (me) believes:
- The restaurant is trying to protect their employees from customers who do not tip and therefore adds the tip to the check. The 18% (or whatever amount) is a tip on top of the minimum wage the restaurant already pays. The customer does not need to leave a gratuity because it is already included.
What it boils down to:
- In the case of the Miami restaurant, they are raising their prices in a deceitful way that harms their employees. The restaurant needs/wants to charge more for their food in order to pay the legally-required minimum wage but doesn't want to drive away customers. By adding the service charge they can collect more from the customer while keeping the prices the same. The customer believes this service charge is a "tip" even though it is actually used to cover minimum wages. Since the tip is already included the customer either does not leave more or leaves very little more. The employees lose out on actual tips.
IMPORTANT: This was the argument made by the Miami restaurant. Other restaurants may actually pass the service charge to the employees as an actual tip in addition to their legally-acceptable wages.
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Why do people insist on making claims without looking them up first, do they really think no one will check? Proof by emphatic assertion rarely works.
Confirmation bias is real; I can find any number of articles that say so.
Victor, NY
Randallstown, MD
Yakima, WA
Stevensville, MD
Village of Hillsborough
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