By: Kara M. Maciel
The following is a selection from the Firm’s October Take 5 Views You Can Use which discusses recent developments in wage hour law.
- IRS Will Begin Taxing a Restaurant’s Automatic Gratuities as Service Charges
Many restaurants include automatic gratuities on the checks of guests with large parties to ensure that servers get fair tips. This method allows the restaurant to calculate an amount into the total bill, but it takes away a customer’s discretion in choosing whether and/or how much to tip the server. As a result of this removal of a customer’s voluntary act, the … Continue Reading