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Labor Regulations › Tips › Service Charges

Davidoff Hutcher & Citron LLP

Service Charges vs. Tips: Ensuring Legal Compliance in New York Restaurants

Davidoff Hutcher & Citron LLP on

Understanding the difference between service charges and tips is critical for New York restaurant owners to remain compliant with state and federal labor laws. Misclassifying these charges can lead to legal disputes,...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Restaurant's Mandatory Service Charge Wasn't a Tip

Mitchell, Williams, Selig, Gates & Woodyard,... on

In the current battle to hire and retain good workers, employers have developed creative ways to balance employees’ increased compensation expectations against the costs of running a business. In addition, restaurants using...more

Littler

Salt Bae’s Sprinkle of First Impression: Eleventh Circuit Holds Mandatory Service Charges Are Not “Tips” and May Be Used to...

Littler on

On March 18, 2022, the U.S. Court of Appeals for the Eleventh Circuit upheld a district court’s decision that an 18% service fee charged at the upscale Miami steakhouse of celebrity chef Nusret Gökçe was not a “tip” and was...more

Epstein Becker & Green

California Court Rules That Mandatory Service Charges May Be Gratuities

Epstein Becker & Green on

Upsetting what many considered settled precedent, a California Court of Appeal has held that a mandatory service charge may qualify as a “gratuity” under California Labor Code Section 351 that must be distributed to the...more

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