[Michael G.]

Do waitresses in restaurant's around TV share their tips?

[retiredguy123]

It depends on the restaurant. Tip pooling is legal, but only among tipped employees. Some people say that tips are shared with the kitchen and bussing staff, but that is illegal according to Federal law.

[Gpsma]

Good question. But this is the Villages…many cheap tippers here. My guess..75% tip almost nothing or substandard tips. 20% tip the recommended amount. 5% tip too much and love to brag on totv that they are as generous as Frank Sinatra in his heyday.

Personally…i tip no more than 5%. Why tip to just bring a plate over.

Time to stop this tipping nonsence. Wait…next year it will be suggested u tip 25%.

[Kenswing]

It never ends.

[OrangeBlossomBaby]

Originally Posted by retiredguy123

It depends on the restaurant. Tip pooling is legal, but only among tipped employees. Some people say that tips are shared with the kitchen and bussing staff, but that is illegal according to Federal law.

Just because it's illegal doesn't mean they don't do it. At Gator's Dockside, all tips that are on debit/credit cards get pooled by wait staff, bartenders, hosts, and kitchen staff for the shift.

Give your wait staff their tip in cash, and make sure to hand it to them personally. Otherwise - it'll be pooled.

[Bill1701]

Originally Posted by OrangeBlossomBaby

Just because it's illegal doesn't mean they don't do it. At Gator's Dockside, all tips that are on debit/credit cards get pooled by wait staff, bartenders, hosts, and kitchen staff for the shift.

Give your wait staff their tip in cash, and make sure to hand it to them personally. Otherwise - it'll be pooled.

That's nice in theory, but many of us do not use cash anymore.

[OrangeBlossomBaby]

Originally Posted by Gpsma

Good question. But this is the Villages…many cheap tippers here. My guess..75% tip almost nothing or substandard tips. 20% tip the recommended amount. 5% tip too much and love to brag on totv that they are as generous as Frank Sinatra in his heyday.

Personally…i tip no more than 5%. Why tip to just bring a plate over.

Time to stop this tipping nonsence. Wait…next year it will be suggested u tip 25%.

Because if their tips, combined with their wages, equals the state minimum wage, then it's as if they didn't get any tip at all. The most they can get - if you UNDER-tip, is $11/hour. Even if they work their butts off, go beyond the minimum requirements of their job to give you outstanding customer service, and have earned more - they will have nothing to show for that extra work. Tip them substandard, and you should expect substandard service.

Their hourly wage is LESS than minimum wage. Their tips are expected to compensate for that, in this state. In many other states, the tip is intended to show appreciation for doing MORE than the minimum requirement for the job. Some restaurant policies also start their wait staff at minimum or better, with the tips being theirs to keep if they earn them.

It's an incentive for GOOD wait staff to show up and serve you.

[retiredguy123]

Originally Posted by Bill1701

That's nice in theory, but many of us do not use cash anymore.

I only use cash in a restaurant. If restaurants want me to use a credit card, they need to provide a card transaction machine at the table and do not charge me an extra fee (one example is Chili's). In that case, I will use a credit card. But, whatever payment method I use, I will not use a different method for the tip. If the restaurant owner is stealing tip income from the server, that is an issue between the server and the owner. I wonder how the restaurant explains their W-2 employee income forms to the IRS, when they are stealing money from tipped employees to pay non-tipped employees.

[kansasr]

Originally Posted by Gpsma

Good question. But this is the Villages…many cheap tippers here. My guess..75% tip almost nothing or substandard tips. 20% tip the recommended amount. 5% tip too much and love to brag on totv that they are as generous as Frank Sinatra in his heyday.

Personally…i tip no more than 5%. Why tip to just bring a plate over.

Time to stop this tipping nonsence. Wait…next year it will be suggested u tip 25%.

And then watch people bitch when prices are raised to provide employees with a livable wage!

[retiredguy123]

Originally Posted by OrangeBlossomBaby

Because if their tips, combined with their wages, equals the state minimum wage, then it's as if they didn't get any tip at all. The most they can get - if you UNDER-tip, is $11/hour. Even if they work their butts off, go beyond the minimum requirements of their job to give you outstanding customer service, and have earned more - they will have nothing to show for that extra work. Tip them substandard, and you should expect substandard service.

Their hourly wage is LESS than minimum wage. Their tips are expected to compensate for that, in this state. In many other states, the tip is intended to show appreciation for doing MORE than the minimum requirement for the job. Some restaurant policies also start their wait staff at minimum or better, with the tips being theirs to keep if they earn them.

It's an incentive for GOOD wait staff to show up and serve you.

Why should you expect substandard service if you don't tip? It doesn't work that way in other businesses. Everyone should get at least the standard service.

[BrianL99]

Originally Posted by OrangeBlossomBaby

Just because it's illegal doesn't mean they don't do it. At Gator's Dockside, all tips that are on debit/credit cards get pooled by wait staff, bartenders, hosts, and kitchen staff for the shift.

Give your wait staff their tip in cash, and make sure to hand it to them personally. Otherwise - it'll be pooled.

In Tip Sharing arrangements, all "Tips" going into the "pool", regardless of if they are paid in cash or as part of a credit card/debit card transaction.

Employees who are not traditionally tipped (dishwashers/cooks/etc are allowed to participate in Tip Pooling arrangements, under some circumstances.

Managers cannot participate in a Tip Pool, but are allowed to keep Tips they receive, provided they are paid for service provided by the manage alone.

Federal Register
::
Tip Regulations Under the Fair Labor Standards Act (FLSA); Partial Withdrawal

[retiredguy123]

Originally Posted by BrianL99

In Tip Sharing arrangements, all "Tips" going into the "pool", regardless of if they are paid in cash or as part of a credit card/debit card transaction.

Employees who are not traditionally tipped (dishwashers/cooks/etc are allowed to participate in Tip Pooling arrangements, under some circumstances.

Managers cannot participate in a Tip Pool, but are allowed to keep Tips they receive, provided they are paid for service provided by the manage alone.

Federal Register
::
Tip Regulations Under the Fair Labor Standards Act (FLSA); Partial Withdrawal

The only circumstance where non-tipped employees can receive tip pool income is the following:

"an employer that pays tipped employees the full minimum wage and does not take a tip credit may require tipped employees to share tips with dishwashers, cooks, or other employees who are not employed in an occupation in which employees customarily and regularly receive tips"

I don't think that applies in most restaurants because typically, they do not pay servers the full minimum wage. But, as a general rule, tips received by a server are the property of the server, not the restaurant.

[Michael G.]

Originally Posted by Bill1701

That's nice in theory, but many of us do not use cash anymore.

If their tips are cash, minimum taxes are do and many are reported.
If tips are added to a credit card, all taxes apply.

Also, is it rude to ask your waiter if tips are pooled or not?

[retiredguy123]

Originally Posted by Michael G.

If their tips are cash, minimum taxes are do and many are reported.
If tips are added to a credit card, all taxes apply.

Also, is it rude to ask your waiter if tips are pooled or not?

Restaurant servers get special tax treatment from the IRS, called the 8 percent rule. The restaurant is required to calculate 8 percent of the restaurant's gross income, and prorate that amount to each server's W-2 income form as tip income. Then, the server can either report and pay income tax on that amount, or they can report a lesser amount and be subject to an IRS audit. So, even if they make more than 8 percent in tips, they only need to pay tax on the calculated 8 percent, and they will not be audited.

[BrianL99]

Originally Posted by Michael G.

If their tips are cash, minimum taxes are do and many are reported.
If tips are added to a credit card, all taxes apply.

Also, is it rude to ask your waiter if tips are pooled or not?

Unless a restaurant is a "one off" (local, family owned), you can usually assume that Tips are shared. It's simply not practical to run a restaurant any other way. Tips are taxed just like any other pay, which is another reason pooling tips are more efficient for owners ... the tips are reported and the owner is off the hook.