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Ruling on Restaurant Service Charges

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  #61  
Old 07-10-2022, 12:10 PM
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Originally Posted by BamaBoy451 View Post
The most I've paid for a service fee for using a credit card at any of the restaurants around here was 37 cents regardless of the amount of the bill. To my understanding restaurants used to absorb that as a cost of doing business but during and after covid and the present economic situation, they no longer can.
"no longer can" should be "no longer will." They can do it if they choose to, they just choose not to.

I've definitely paid more than 37 cents for the service charge. I remember one place in particular but I know there have been others. 2% is common which would be 40 cents on a $20 order.
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Old 07-10-2022, 12:11 PM
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Originally Posted by BamaBoy451 View Post
The most I've paid for a service fee for using a credit card at any of the restaurants around here was 37 cents regardless of the amount of the bill. To my understanding restaurants used to absorb that as a cost of doing business but during and after covid and the present economic situation, they no longer can.
If a restaurant claims that they need extra money for credit card purchases, I think they are lying. It has long been proven that credit card customers spend substantially more money than cash customers. When McDonald's started accepting credit cards, their average purchase amount increased by almost 50 percent. If restaurants stopped accepting credit cards, many of them would go out of business.
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Old 07-10-2022, 12:13 PM
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Originally Posted by Sparky365 View Post
They are adding gratuity to our total at the Poke in Brownwood. You won't notice it unless you ask for your receipt. I don't have a problem tipping as long as I know I am doing it.
I agree with you.
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Old 07-10-2022, 12:25 PM
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Originally Posted by Sparky365 View Post
They are adding gratuity to our total at the Poke in Brownwood. You won't notice it unless you ask for your receipt. I don't have a problem tipping as long as I know I am doing it.
I'm confused. How do they add money to the total without giving you a bill and a receipt? What if you pay cash?
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Old 07-10-2022, 12:37 PM
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Originally Posted by BobbyP View Post
Can’t say much about Miami, but I was recently told by a waitress at Cody’s, that she made $6.85/hr.

If that’s the case, and considering that quite a bit of the the time that food and drinks at Codys is discounted, are we tipping enough?

If we tip for one drink when it’s two-for-one, is that enough?
The minimum wage in Florida is $10 per hour, but that doesn't include "tipped" employees.

Paying waitstaff workers $6.85 an hour assures two things: constant turnover and mediocre service. Something better comes along and they're out the door, and who can blame them? Much better to pay them more per hour, $10 or even higher. Probably more economical for the restaurant in the long run, cutting turnover costs and assuring more competent service (and thus more return business).
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Old 07-10-2022, 12:51 PM
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Originally Posted by retiredguy123 View Post
It is not correct that the tip is added to the minimum wage. Tipped employees are usually paid much less than the minimum wage, and the restaurant is allowed to apply the tip income to make up the difference between the lower wage and the mandated minimum wage. The court case, cited by the OP, ruled that the service charge could not be treated as tip income for the purpose of making up the difference between the lower income and the minimum wage.

I understand your point, but I don't think the restaurant can have it both ways. If they are charging a service charge for service, I don't think they should keep that money, and then to expect the customer to pay an additional fee in the form of a tip to the server. Just my opinion.
In Florida, there is a minimum wage for most employees which I believe is $10/hour. For tipped employees, there is a separate minimum wage rate of $6.98. (There are exceptions to the minimum wage ). Typically, waiters, bartenders etc are considered tipped employees whereas a cook or dishwasher are not. So I would assume that these other workers are paid at or above the higher minimum wage. I have read theat a "Service Charge" can effectively be used by the management to be applied by the management to meet the minimum wage requirement, thus I believe that to discount the tip due to a service charge would wrongly hurt the Wait staff.
However, I migrate to someplace like McDonalds or Culvers. I would argue that the workers there would all be non-tipped employees and therefore should be paid the $10.00 minimum wage.
A tipped employee would be foolish to working the job without getting tips that would exceed the $10 minimum wage. Since the tip is based upon meal value, the best of these jobs would be in high volume, high cost restaurants. A meal of $100 at 20% tip would be $20. Depending upon sharing pool split , that could easily exceed the higher minimum wage. Several tables an hour could be a nice wage. Thus, a waitress who says she is paid $6.85/ hour is only telling a portion of the story.
  #67  
Old 07-10-2022, 06:40 PM
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Originally Posted by ThirdOfFive View Post
The minimum wage in Florida is $10 per hour, but that doesn't include "tipped" employees.

Paying waitstaff workers $6.85 an hour assures two things: constant turnover and mediocre service. Something better comes along and they're out the door, and who can blame them? Much better to pay them more per hour, $10 or even higher. Probably more economical for the restaurant in the long run, cutting turnover costs and assuring more competent service (and thus more return business).
Yes it does. There is a "basic" minimum wage of $6.98 for servers, but if the tips are not enough, the employer must make up the difference to $10.00...

"Effective September 30, 2021 the minimum wage in Florida increased to $10.00 an hour, and the required cash wage for tipped employees increased to $6.98."
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Old 07-11-2022, 07:11 AM
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??? The calculator on my computer tells me that 20% of $5.00 is $1.00. Where did the extra $0.25 come from?
Thank you.
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Old 07-11-2022, 07:37 AM
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[

Current minimum wage is $10.00 except for tipped employees which is $6.98

Both to go up September 1.
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Old 07-11-2022, 09:29 AM
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Use the Seinfeld tip wizard
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Old 07-11-2022, 10:56 AM
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Originally Posted by Haggar View Post
[

Current minimum wage is $10.00 except for tipped employees which is $6.98

Both to go up September 1.
But...

If, when tips are added in, if the employee doesn't average at least $10/hr, the employer must make up the difference...
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Old 07-11-2022, 10:56 AM
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Use the Seinfeld tip wizard
The Seinfeld Tip Wizard is not available on Amazon, but you can buy an "Easy Tip Card" for $5.49. The original Seinfeld tip wizard was $200 in 1998.
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Old 07-11-2022, 03:04 PM
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Originally Posted by Sparky365 View Post
They are adding gratuity to our total at the Poke in Brownwood. You won't notice it unless you ask for your receipt. I don't have a problem tipping as long as I know I am doing it.
How much did they charge? Really not a fan of the way it’s done
  #74  
Old 07-22-2022, 07:49 AM
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Originally Posted by nn0wheremann View Post
Tipping is obnoxious. Pay the staff a reasonable wage, charge the customer an honest price.
I can just hear the explosion if all restaurants simply raised their prices 20% to give to the employees in lieu of tipping.
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Old 07-22-2022, 07:51 AM
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Originally Posted by Keefelane66 View Post
No server is worth a 30-35% tip!





Yes there are but certainly not all of them
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