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Post by manomo on Nov 11, 2023 0:42:38 GMT
While traveling last month, DH and I stopped at a sandwich shop. When the tip screen came up, the sandwich artist told us not to tip. Why? Because the company who owns that franchise keeps all the tips, doesn't share a penny with the employees who provide the service.
Over the next few days, we started asking the wait staff if they were going to receive the tip we left. We had another young woman tell us that if she didn't make the quota in sales for the day that she wouldn't get her tips.
I am still gobsmacked.
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leeny
Pearl Clutcher
Posts: 4,782
Location: Northern California
Site Supporter
Jun 27, 2014 1:55:53 GMT
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Post by leeny on Nov 11, 2023 0:51:11 GMT
My daughter once worked for a restaurant that had an owner who served as the host. The owner took a cut of the tips from all the servers saying she was entitled to a tip too. Well an employee filed a complaint with the state and what the owner was doing turned out to be illegal. The owner had to pay back to all the employees who had worked under her.
It's awful what people will do in the restaurant industry to their workers.
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Post by dewryce on Nov 11, 2023 0:56:05 GMT
That is horrible! Good for them for letting you know. I wonder how that works with a franchise, if the head company has any say or would be interested in knowing. Thank you for the heads up, I will definitely ask from here on out.
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Post by busy on Nov 11, 2023 1:24:12 GMT
That’s illegal in some (most?) states.
ETA it’s a violation of federal employment law
“It is illegal under California and federal law for restaurant owners, managers, or supervisors to keep or share any portion of the tips provided to its employees by patrons. Exceptions may arise with laws concerning the tip credit, tip pooling, and credit card tips.
However, California’s tip laws are more favorable for employees than federal tip laws where exceptions may apply. When conflicting tip laws exist, employers must follow the federal, state, or local law that is most favorable to the employee.”
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Post by katlady on Nov 11, 2023 1:28:00 GMT
One of the reasons I try to give cash tips. I rather the tip go underreported than someone trying to take it away from the employees.
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Post by malibou on Nov 11, 2023 1:59:43 GMT
My besties daughter found herself in a predicament like that here in CA. Dh went down there with the info printed out and gave the owners the "opportunity" to make it right for all of the employees. Fortunately they did, but dh was prepared to represent all of those kids. He was hopping mad. Within a month they put the restaurant up for sale.
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Post by dewryce on Nov 11, 2023 2:36:13 GMT
That’s illegal in some (most?) states. ETA it’s a violation of federal employment law “It is illegal under California and federal law for restaurant owners, managers, or supervisors to keep or share any portion of the tips provided to its employees by patrons. Exceptions may arise with laws concerning the tip credit, tip pooling, and credit card tips. However, California’s tip laws are more favorable for employees than federal tip laws where exceptions may apply. When conflicting tip laws exist, employers must follow the federal, state, or local law that is most favorable to the employee.” I wonder if this is an exception under the credit card tips section. But that’s most tips these days isn’t it? We don’t usually carry cash but this makes me think we should. |
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Post by busy on Nov 11, 2023 3:12:21 GMT
That’s illegal in some (most?) states. ETA it’s a violation of federal employment law “It is illegal under California and federal law for restaurant owners, managers, or supervisors to keep or share any portion of the tips provided to its employees by patrons. Exceptions may arise with laws concerning the tip credit, tip pooling, and credit card tips. However, California’s tip laws are more favorable for employees than federal tip laws where exceptions may apply. When conflicting tip laws exist, employers must follow the federal, state, or local law that is most favorable to the employee.” I wonder if this is an exception under the credit card tips section. But that’s most tips these days isn’t it? We don’t usually carry cash but this makes me think we should. They can only keep the amount they pay for the credit card processing fee. www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa#:~:text=Credit%20Cards%3A%20Under%20the%20FLSA,the%20tip%2C%20less%20that%20percentage. |
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Post by littlemama on Nov 11, 2023 3:28:58 GMT
Just another reason to be done with tipping.
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Post by 950nancy on Nov 11, 2023 4:21:53 GMT
One of the reasons I will go to Sonic is that when the carhop delivers the food, they immediately get credit for the tip I give. I have asked at several Sonics and they all have said the same thing. Wouldn't ever tip a business.
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Post by lisae on Nov 11, 2023 16:47:30 GMT
One of the reasons I try to give cash tips. I rather the tip go underreported than someone trying to take it away from the employees. Also, if you leave cash, there are no service fees that come out of the money. |
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Post by Scrapper100 on Nov 11, 2023 22:04:58 GMT
There is a local frozen yogurt place that does this. If cash is left the owner has it on video and will take it. He has done many crazy things but has been doing it for years. He treats his employees horribly. He has two locations I think snd many previous employees have posted about his bad and illegal behavior. I don’t know how he is still in business as you would think there would be dozens of complaints snd reports to the labor board and health department for other issues.
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Post by crazy4scraps on Nov 12, 2023 1:15:02 GMT
One of the reasons I try to give cash tips. I rather the tip go underreported than someone trying to take it away from the employees. Also, if you leave cash, there are no service fees that come out of the money. DH is a firm believer in paying with cash (especially with small businesses). He’s shared a version of the quoted post a few times. This was true for us as small business owners. We were paying upwards of $15K annually in credit card fees every year. When we got a notice that our merchant fees were going up yet again, he started telling his clients that while paying with a card is still an option, if they choose to pay that way there will be a 4% surcharge added to their invoice to offset that added expense rather than raising his rates by 4% across the board regardless of how people pay. I would say that a majority of people who were paying by card purely out of habit switched to paying by check (and occasionally cash). Now our credit card fees are typically less than $200 a month which is a huge drop. |
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Post by lisae on Nov 12, 2023 2:14:52 GMT
DH is a firm believer in paying with cash (especially with small businesses). I have this policy was well. Cash or a check if it is for a sizable amount like a repair bill. Some business owners have expressed appreciation for my using cash. My former hairstylist stopped accepting credit cards altogether. She would take debit cards; I paid her cash. |
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Post by crazy4scraps on Nov 12, 2023 3:09:17 GMT
DH is a firm believer in paying with cash (especially with small businesses). I have this policy was well. Cash or a check if it is for a sizable amount like a repair bill. Some business owners have expressed appreciation for my using cash. My former hairstylist stopped accepting credit cards altogether. She would take debit cards; I paid her cash. Our dentist gives a discount if we pay with cash or check at the time of service so they don’t have to chase down payment after the fact. |
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Post by hop2 on Nov 12, 2023 11:35:05 GMT
That’s illegal in some (most?) states. ETA it’s a violation of federal employment law “It is illegal under California and federal law for restaurant owners, managers, or supervisors to keep or share any portion of the tips provided to its employees by patrons. Exceptions may arise with laws concerning the tip credit, tip pooling, and credit card tips. However, California’s tip laws are more favorable for employees than federal tip laws where exceptions may apply. When conflicting tip laws exist, employers must follow the federal, state, or local law that is most favorable to the employee.” I wonder if this is an exception under the credit card tips section. But that’s most tips these days isn’t it? We don’t usually carry cash but this makes me think we should. I Tip cash 95% of the time. This is one of the reasons. Another is that more on the cc adds more to the cc fee. I usually pay restaurants totally in cash. The %5 of the time is if I for some reason was caught unaware. Unusual. Or, more likely, if I was paying the bill with CC and they already added their tip. I find this annoying and presumptuous, and I get petty and let it ride on the CC. First of all I probably would have tipped %20 rather than your %18 and now you can also pay the CC fee on my tip since you insisted on adding it to the bill first. I’m tired of subsidizing the salaries of business owners who don’t pay their employees properly, so when they additionally aggravate me by deciding and adding my tip I just use credit card |
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iowgirl
Pearl Clutcher
Posts: 4,295 
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Post by iowgirl on Nov 12, 2023 14:55:51 GMT
I wonder if this is an exception under the credit card tips section. But that’s most tips these days isn’t it? We don’t usually carry cash but this makes me think we should. I almost always tip in cash. Quite a few of the locally owned eateries around here don't take credit cards. They either have a cash machine or one is close by and will direct people there who don't have any cash or checks on them. Our dentist gives a discount if we pay with cash or check at the time of service so they don’t have to chase down payment after the fact. We believed in teaching our kids how to 'fend for themselves" at an early age. When my daughter got her braces, she was in on the overall cost meeting with the orthodontist. She made the 'cash' deal, which we had prepped her for. We paid up-front for all services, but she did the dealing for it. There is quite a discount usually for cash/check payment up front. When she purchased her first car on her own, after graduating from college - she did the trade in and price dealing on her new car completely by herself. We know the salesman (purchased many vehicles from him). He told us later he was flat out impressed with her and had never had anyone that young be that confident in a purchase. We felt like learning how to purchase and pay for things at an early age was a major life lesson. It isn't always easy to ask for a cost reduction, when there will easily be one. But I laugh now, when I hear my grown kids politely ask if "there is a better price" available. LOL Often there is! |
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peabay
Prolific Pea
Posts: 9,917
Jun 25, 2014 19:50:41 GMT
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Post by peabay on Nov 12, 2023 15:00:59 GMT
Our local Dunkin doesn't give the staff the tips. The ladies at the register told me that once so I never tip there.
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