Partners Offer Blueprint for Restaurateurs Considering a Service Fee Over Tip Credits
In a bylined article published in Law360, Ted Boehm and Courtney Leyes offer a blueprint for restaurateurs considering a service fee over tip credits. Citing a recent appellate case that sided with celebrity restaurateur “Salt Bae,” who shifted his Miami restaurant to a mandatory service fee from discretionary tipping, Ted and Courtney map out this clear six-point checklist:
- Make sure the fees are mandatory.
- Include them in your gross receipts (not all courts agree on this provision so best to err on the side of caution).
- Be careful if you’re considering the overtime exemption.
- Have a plan for when a customer does leave a tip (never dole that out to supervisors).
- Follow local laws and ordinances.
- Communicate clearly and often with your staff about the transition and new policies.
To read the article visit Law360 (subscription required).