Jul 22, 2008

Tips charged on Credit Cards...Where they go!

In today's newspaper there is an article called...

Here's a good tip: Don't nickel and dime servers....
....It goes on to say this:Every last cent of our tip is meant to go to the person who waits on us.
Period.
And we deserve to know if management has decided otherwise...
...What servers won't tell you unless you ask, is whether they get to keep the full amount of tips left on credit cards...
Below is an article that explains the 'credit card fee' deducted from employees tips....
Also, I went online to the Labor Dept. web site ...
U.S. Department of Labor, Employment Standards Admin., Wage & Hour Division, Washington, D.C. 20210
......It says this...
"Where tips are charged on a credit card, it is the position of the Wage and Hour Division that the tips due the employee must be paid to the employee and not later than the next pay day and may not be held by the employer while the employee is waiting to be reimbursed by the credit card company.

Furthermore, the Wage & Hour Division does not question the practice whereby the employer reduces the amount of credit card tips paid to the employee by an amount no greater than the amount charged to the employer by the credit card company for processing..."
I applaud Outback for, voluntarily, NOT deducting this fee from their employees paychecks even though the U.S. Labor Dept. allows that process...
And as the article says....
Here's a good tip: Don't nickel and dime servers....


No comments: