Stop restaurant owners from deducting "tip charge" fees from servers' tips
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As a veteran in the service industry, I have recently come to find that it is totally acceptable by FLSA standards for restaurant owners to pass along credit card transaction fees, pertaining to the tip portion of the bill, on to their employees. Now with that being said, it is not THE LAW, it is just not illegal. It is however, bad employee/management relations, and something that needs to be addressed.
As many know, a restaurant's waitstaff is taxed with W2 forms, not 1099s, as independent contractors, therefore, they do not have the discretion on which payments they'd like to accept. A business accepting credit cards as a form of payment, is a standard of doing business, which is now being passed down to employees. Not only is this kind of business dubious, dishonest, and crooked, it is also, more often than not, completely misused. Most credit card companies charge different percentages to use their services. Consequently, this makes it hard to find an average percentage on which to charge the employees for their "tip refund." By and large, employees are being overcharged by their employers.
This petition is important to me because not only am I in the service industry, but many of the most hard working people I know are as well. We are working 40 plus hours a week for these companies; without overtime pay, paid time off, FMLA, or healthcare. We work hard to feed our families. We spend countless hours away from our loved ones, providing exceptional service to our customers and being star employees, sometimes not even working for minimum wage. Passing down a charge for something the employee cannot control needs to end. After all, if the average 2% isn't a "big deal," then why aren't the business owners covering it?
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