Re:No tipping means better business
by nommm-nommm on Tuesday December 27, 2016 @10:54AM
(#13263811)
It's not illegal.
https://www.dol.gov/whd/regs/compliance/whdfs15.pdf
>A compulsory charge for service, for example, 15 percent of the bill, is not a tip. Such charges are part of the employer's gross receipts. Sums distributed to employees from service charges cannot be counted as tips received, but may be used to satisfy the employer's minimum wage and overtime obligations under the FLSA. If an employee receives tips in addition to the compulsory service charge, those tips may be considered in determining whether the employee is a tipped employee and in the application of the tip credit.
Re:No tipping means better business
by JumpCrisscross on Tuesday December 27, 2016 @12:39PM
(#13264551)
Hence my caveat, "depending on the city and state". For example, it's not allowed in California [1].
[1] http://www.tipcompliance.com/polLearningCenter.cfm?doc_id=89
Depending on the city and state, this could be illegal. I'd encourage you to ask the server if the 40% goes to the kitchen or the owner. If the latter, write a letter or make a call to your labour law enforcement group.