You are not really tipping if you pay with a card.

[MILGAUSS88]

You are not really tipping if you pay with a card. At least in some states.
My daughter recently got her first job, and it was at a restaurant.
This is a national chain, and not fast food.
It pays $10/hr which surprised me, as I know several people that have waited tables and few got more than the $4.50/hr minimum wage that our state has for jobs that are tip supported. (They still have to make the federal minimum wages after tips.)

Well, after my daughter had been there a few weeks, she found out that tips paid by card are applied to her $10/hour pay. With the company paying any shortfall of the $10/hour.
If the tip was paid in cash they could keep it.
I did some research and found out yes this is possible.
So, if you truly want to tip your waiter/waitress, keep this in mind.

While doing research, I also found out that required gratuities, don't necessarily go the waiting staff either.

[KathleenL]

Tell your daughter to move to California and get a job as a server. Here in California, servers make minimum wage before tips, and California Labor Code §351 prohibits employers from deducting tips from the servers' wages, even if the tips are paid on a credit card. The current minimum wage in California is $13 per hour if there are 26 or more employees, or $12 per hour if there are 25 or fewer employees. On January 1, 2021, each of those amounts increases by $1. Furthermore, tips paid by credit card must be paid to the server no later than the next regular payday following the date the tip was paid by the customer.

[MILGAUSS88]

Originally Posted by KathleenL

Tell your daughter to move to California and get a job as a server. .

I did see that California is an exception.
But alas, we will not be moving to California, so that my daughter can wait tables.

[Mifune]

[Beo3]

I always try and tip with cash to prevent this kind of nonsense.

[MILGAUSS88]

Originally Posted by Mifune

That's kind of rude.
As I mentioned, I know several people that have waited tables.
I realize how hard the work is.
And I prefer that my tip goes to supplement their income, not subsidize the restaurant for their pay.

I thought some other people might feel the same way, and like to make sure their waiter receives the tip as well.
(This does not apply to California, as mentioned above. But there are 49 other states. Sorry if there are other exceptions I am not aware of.)

[Booth9999]

What state is this? $10 sounds low.

[77T]

In the US, the fact that tips are processed through the restaurant’s credit card processor doesn’t give them domain to use those funds as a wage spread. It is a federal regulation that was being twisted under an earlier administration.

Some managers (even in large chains) get a false sense of ownership over tips that legally belong to the waitstaff.

Ironically, a new Labor Dept. Rule is in effect to save waitstaff from filing lawsuits to get their tips back. A simple complaint can get rogue managers fined.

https://www.nrn.com/workforce/employ...der-final-rule

Hope that helps.


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[MILGAUSS88]

Originally Posted by Booth9999

What state is this? $10 sounds low.

There is a another whole country outside of California.
I would rather not say what state I am in, but a personally know people in 2 different states that were being paid $5/hr. Even at buffets which do not get the best tips.

[shaunylw]

Originally Posted by MILGAUSS88

There is a another whole country outside of California.
I would rather not say what state I am in, but a personally know people in 2 different states that were being paid $5/hr. Even at buffets which do not get the best tips.

I didn’t know. Thats really terrible. I remember bussing/waiting tables many years ago and as a young kid it was a great gig. You get some cash in your pocket every night. Sounds like Starbucks might be a better paying job with more flexible hours for a young person outside of California.


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[MILGAUSS88]

Originally Posted by 77T

In the US, the fact that tips are processed through the restaurant’s credit card processor doesn’t give them domain to use those funds as a wage spread. It is a federal regulation that was being twisted under an earlier administration.

Some managers (even in large chains) get a false sense of ownership over tips that legally belong to the waitstaff.

Ironically, a new Labor Dept. Rule is in effect to save waitstaff from filing lawsuits to get their tips back. A simple complaint can get rogue managers fined.

https://www.nrn.com/workforce/employ...der-final-rule

Hope that helps.


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Thanks, for the info.
But, I really just posted this so that people are aware that this is possible.
I was never aware of it before this time.
We have had cash vs credit discussions on this forum before and I know a large percentage of people pay by card. I thought this might be an eye opener to other people besides myself.

My daughter was working to many hours and got behind on her homework, so I told her no more. She will have to wait until summer vacation if she wants to get a job.

[77T]

Originally Posted by MILGAUSS88

Thanks, for the info.
But, I really just posted this so that people are aware that this is possible.
I was never aware of it before this time.

Got it. Well, at least anyone coming across this thread will know a new enforcement rule is possible.

Willful tip theft is the sleaziest management trick around.


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[MrGoat]

I worked for Outback between 2000-2002 as a host, takeout waiter, busboy and dishwasher. I was making like $150 a day doing takeout and I think I got a lot of tips on cards (can’t remember that specifically). I got tipped out by the waiters and bartenders when I hosted or bussed. When I washed dishes I made $10 an hour. I don’t know how it is now but that’s my experience.

I believe it was $2.13 an hour for tipped employees for a very long time here in Florida. I don’t think it changed till this year. Now it’s $6.98 as a tipped employee. The way I see it (I may very well be wrong) is that tips earned by that employee are paid to that employee including their $6.98 an hour. If for some reason the employee does not make enough tips to reach $10 an hour the employer must pay them the difference per hour to bring them to $10 an hour. The employer is not allowed to limit their earned tips to where they only earn $10 an hour though. This may vary in other states and I may not be understanding this correctly. Just my understating of how it is supposed to work here.


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[TheHulk]

Originally Posted by KathleenL

Tell your daughter to move to California and get a job as a server. Here in California, servers make minimum wage before tips, and California Labor Code §351 prohibits employers from deducting tips from the servers' wages, even if the tips are paid on a credit card. The current minimum wage in California is $13 per hour if there are 26 or more employees, or $12 per hour if there are 25 or fewer employees. On January 1, 2021, each of those amounts increases by $1. Furthermore, tips paid by credit card must be paid to the server no later than the next regular payday following the date the tip was paid by the customer.

That’s great advice! The cost of living is so reasonable in Cali. She could share a two bedroom apt with 5 other girls from the restaurant.

[pickettt]

I ALWAYS tip in cash because I want an instant and visual correlation between the tip and the service provided. I think that doesn't get recognized on the credit card slip, unless the server is the one that picks up said slip. Also, I've known a restaurant owner/manager to have cheated his servers. I'm normally a level headed guy, but it warranted a...conversation.

[MILGAUSS88]

From what I read it is not considered tip theft.
The waiters are guaranteed $10/hour.
The restaurant is legally allowed to pay $4.50/hr then back fill the remaining $5.50/hr with the tips.

Again I want to emphasize, this was done only with electronically paid tips.
They were allowed to keep cash tips. My impression was they thought it was too hard to police.


It is my understanding that the tips are legally allowed to be used for that $10/hr, at least at this time.

[GB-man]

Honestly I rarely carry cash. That sort of behavior by management should be 100 percent illegal.

I thought I remember Mario Battali got in trouble for one of his restaurants skimming the tips. I honestly didn’t know you could do that.

My mother always tips cash and now I know why.

[GB-man]

Originally Posted by Mifune

Nevermind what you normally would do, cough up a buck you cheap bastard

[Tools]

Most wait staff around here put their tips in the pool, which is split amongst those, including some back-of-house workers.

It's a pretty small operation, now days, where the tip goes to the actual worker.

[Chewbacca]

Originally Posted by MILGAUSS88

You are not really tipping if you pay with a card. At least in some states.
My daughter recently got her first job, and it was at a restaurant.
This is a national chain, and not fast food.
It pays $10/hr which surprised me, as I know several people that have waited tables and few got more than the $4.50/hr minimum wage that our state has for jobs that are tip supported. (They still have to make the federal minimum wages after tips.)

Well, after my daughter had been there a few weeks, she found out that tips paid by card are applied to her $10/hour pay. With the company paying any shortfall of the $10/hour.
If the tip was paid in cash they could keep it.
I did some research and found out yes this is possible.
So, if you truly want to tip your waiter/waitress, keep this in mind.

While doing research, I also found out that required gratuities, don't necessarily go the waiting staff either.

I would fight this because on one hand the credit gratuity is supplementing the businesses obligation to pay minimum wage as a top up against a draw. The cash version is being treated as a performance bonus and allowed to be retained by the employee at a higher net value. They’re essentially two-tier and and not being applied as the diner or customer believes to be so.

I expect this will be challenged and if I were your daughter I’d do the math to get a true idea of what she’s leaving on the table (pun), and decide to leave if it’s not fair.

[Tri-Tip]

Originally Posted by MILGAUSS88

There is a another whole country outside of California.
I would rather not say what state I am in, but a personally know people in 2 different states that were being paid $5/hr. Even at buffets which do not get the best tips.

I have a friend that is a server in Idaho and she gets $4.00 per hour plus all her tips. Waiting on tables is definitely an underpaid job for the amount of work and dealing with rude people that is involved.

[Fleetlord]

Originally Posted by Tri-Tip

I have a friend that is a server in Idaho and she gets $4.00 per hour plus all her tips. Waiting on tables is definitely an underpaid job for the amount of work and dealing with rude people that is involved.

Yep..that’s why many people are leaving that sector and doing something else for income.

[austinp]

Originally Posted by Tri-Tip

I have a friend that is a server in Idaho and she gets $4.00 per hour plus all her tips. Waiting on tables is definitely an underpaid job for the amount of work and dealing with rude people that is involved.

If she keeps all her tips she’s probably well over 25$ per hour? How much should waiter’s make? I waited tables for years in college and made 20-40 an hour easily.


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[1William]

Cash is king.

[Sperry]

If I like the help, I'll tell them I'll leave a normal tip on the CC, but also slip them a large folded note and tell them to put it in their pocket. Especially an overworked single mother busting her hump. Bonus tip if the owner / manager is a leering lout picking his teeth by the cash register.

[brandrea]

Originally Posted by pickettt

I ALWAYS tip in cash because I want an instant and visual correlation between the tip and the service provided. I think that doesn't get recognized on the credit card slip, unless the server is the one that picks up said slip. Also, I've known a restaurant owner/manager to have cheated his servers. I'm normally a level headed guy, but it warranted a...conversation.

Same. I love to see it go straight to the person or persons who gave the great service.

[m j b]

Originally Posted by MILGAUSS88

I would rather not say what state I am in...

Why not?

[BroncoOne]

That form of what is called a tip,credit (supplementing a below minimum wage so that the server makes at least min wage) is illegal in many states. Here in Massachusetts credit card tips must be paid output to the server who earned the tip, and the restaurant cannot deduct the numerous credit card fees that it pays on the credit card.

Tip in cash. It helps the server and the restaurant.

[904VT]

I don't think it has to do with it being a cash tip vs credit card, but rather the restaurant policy and how they do it (unless as BroncoOne mentioned there is a state law). Usually the employer can divide cash tips up too among staff outside of servers if they really wanted too.

The whole tip for wage industry is a sham, allowing employers to skirt their wage duties. For this look to underpaying staff while oversizing portions increasing margins. One of the many policies that have been anti-worker and cut real wage growth. If you were to use a more appropriate CPI basket as well such as what was used in the early 90's, you would see inflation is much much higher than portrayed.

[walds11]

Originally Posted by 1William

Cash is king.

Negative ghost rider!

I rarely carry cash, but remember to bring cash to places that prefer tips to be in cash. Other than that, all credit or debit card.

Originally Posted by m j b

Why not?

I know right?