Effective Jan. 1, 2014, the Internal Revenue Service (IRS) will recognize automatic gratuities, a percentage automatically added to a restaurant bill, as a service charge, rather than a tip. The IRS ruling on automatic gratuities isn’t new. This was the result of a June 2012 tax ruling that was delayed to give restaurants and related businesses more time to comply.
Continue Reading Think You Are Leaving a Tip After a Nice Meal, Think Again; You May Be Leaving Someone’s Wages – IRS Ruling On Automatic Gratuity Begins January 2014
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Don’t Gamble On Tip-Pooling Arrangements
By Ramona Carrillo on
Posted in Labor Law, Wage & Hour
On Wednesday, the California Court of Appeal affirmed a casino’s tip-pooling arrangement for its card-dealer employees in Avidor v. Sutter’s Place, Inc. That published decision (available at this link) brings to mind verses from Kenny Rogers’ old country song, The Gambler: “You got to know when to hold ’em, know when to fold ’em, know when to walk away and know when to run.” If the songwriter had known about the Avidor lawsuit, that refrain could have added, “You got to know when California law allows tip-pooling for employees, and know when it don’t.”Continue Reading Don’t Gamble On Tip-Pooling Arrangements