Joe’s Crab Shack Tried Getting Rid of Tips – It Didn’t Last Long

Re:Joe’s Crab Shack Tried Getting Rid of Tips – It Didn’t La... by douche on Thursday May 12, 2016 @06:06PM (#11687178)

I would suspect that you are just overpaying the business, at that point.

To be honest, unless I'm leaving cash, I have my doubts about whether the tip actually makes it to the server.

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Re:Joe’s Crab Shack Tried Getting Rid of Tips – It Didn’t La... by placeybordeaux on Thursday May 12, 2016 @06:08PM (#11687196)

> To be honest, unless I'm leaving cash, I have my doubts about whether the tip actually makes it to the server.

I would be shocked to hear of any restaurants that do that. A warning sign would be the owner running the register.

And for one data point: the restaurant I worked at would convert all tips on credit cards to cash that the servers could take home that day at end of business.

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Re:Joe’s Crab Shack Tried Getting Rid of Tips – It Didn’t La... by rbritton on Thursday May 12, 2016 @06:22PM (#11687270)

A previous employer of mine was a hotel. All banquets had a builtin gratuity, and they took 50% off the top before it was even split up among the servers and porters.

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Re:Joe’s Crab Shack Tried Getting Rid of Tips – It Didn’t La... by gamblor956 on Thursday May 12, 2016 @09:27PM (#11688030)

The proper allocation of tips left with a credit card are trivially auditable by the IRS, and indeed is one of the Small Business Division's focus points when auditing restaurants.

It's not just a tax matter; if the audit uncovers fraud, they refer the case to the DOL and the DOJ.

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