Except you’re wrong. It is a tip because the tip is the service charge. The tip specifically is “we pay them less than minimum wage and your tip covered the rest of their service cost”. A tip AND a service charge, especially a service charge not levied because there were X+ people at the table, is double dipping on the tip. Both fees are for the same thing. Either increase prices or increase the tip(or pay your workers fairly and don’t expect me to subsidized the rest with these secret fees). Make them upfront and honest. This isn’t. This is a perfect invitation to say “you already charged me for the service, so no tip is needed, because that’s what it is for”.
The tip specifically is "we pay them less than minimum wage
Not everywhere. Some areas don’t allow wages that are lower than minimum wage for tipped jobs. The area I live in in California is around $17-18/hr minimum wage regardless of if the job is tipped or not.
Except you’re wrong. Service charges are not considered tips under FLSA rules within the US. Many states and local jurisdictions have special rules for tipped wages, how they’re taxed and those taxes are collected, and service charges are not included in that definition.
Nice reading comprehension. The TIP is a service charge. You got that backwards buddy. So a service charge and a tip is service charge x2. Or you’re admitting that a tip is only for “above and beyond thanks”, in which case it’s not mandatory and this is again a scam.
Service Charges: A compulsory charge for service, for example, 15 percent of the bill, is not considered a tip under the FLSA. Sums distributed to employees from service charges are not tips, but may be used to satisfy the employer’s minimum wage and overtime pay obligations under the FLSA.
A place implementing a service charge cannot classify it as a tip, even if it’s 100% passed onto the employee… a mandatory charge is not a tip, even if the restaurant encourages you to treat it that way. Certain states and jurisdictions tax tips differently than regular wages, and service charges are wages, not tips.
Except you’re wrong. It is a tip because the tip is the service charge. The tip specifically is “we pay them less than minimum wage and your tip covered the rest of their service cost”. A tip AND a service charge, especially a service charge not levied because there were X+ people at the table, is double dipping on the tip. Both fees are for the same thing. Either increase prices or increase the tip(or pay your workers fairly and don’t expect me to subsidized the rest with these secret fees). Make them upfront and honest. This isn’t. This is a perfect invitation to say “you already charged me for the service, so no tip is needed, because that’s what it is for”.
Not everywhere. Some areas don’t allow wages that are lower than minimum wage for tipped jobs. The area I live in in California is around $17-18/hr minimum wage regardless of if the job is tipped or not.
Except you’re wrong. Service charges are not considered tips under FLSA rules within the US. Many states and local jurisdictions have special rules for tipped wages, how they’re taxed and those taxes are collected, and service charges are not included in that definition.
https://www.dov.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
Nice reading comprehension. The TIP is a service charge. You got that backwards buddy. So a service charge and a tip is service charge x2. Or you’re admitting that a tip is only for “above and beyond thanks”, in which case it’s not mandatory and this is again a scam.
You might want to read it again
A place implementing a service charge cannot classify it as a tip, even if it’s 100% passed onto the employee… a mandatory charge is not a tip, even if the restaurant encourages you to treat it that way. Certain states and jurisdictions tax tips differently than regular wages, and service charges are wages, not tips.