Changes to Service Industry Tips

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There are changes coming to the service industry.

You know that automatic gratuity that gets added to big parties at restaurants?

The IRS will classify those tips differently, which means servers won’t get that money until payday, instead of at the end of their shift.

According to laist.com, some speculate that will result in restaurants doing away with the automatic gratuity.

Read more here.

8 comments

  • Robert

    I am a server and I think that this law is absurd, this is just another way for our government to get more money from the “working class”.

  • Heather Elder

    I’m a consumer and I’m tired of having “automatic” gratuities added to my check. I don’t have a choice if I have bad service- which is typically the case when you restaurant in a large group. Some restaurants tack on as much as 25%. It’s robbery is what it is, and we simply don’t go out to eat as much any more because of it.

    • jim

      Heather, its a good thing you dont go out and eat then. No server should have to wait on someone who thinks tipping is robbery.

    • Britt

      Heather, i challenge you to go into work everyday knowing that it’s going to be a fight to get what you deserve for the work that you do. You wait on a table of 10 or more people by yourself receiving glares at every turn and impatient customers who somehow don’t understand that not only does this amount of food take a while but that you are only one person doing the best you can for everyone at the table. not to mention waiting on a large group means you lose tips from other tables you could have turned over in the time it took to do the group. then imagine after all that, no tip. Unless your server literally completely disappeared during your visit, there is no such thing as “bad service” for a group there is only you’re impatience.

  • Misty

    We always tip more than most. Just cause my husband and I both worked for tips. It’s just another way the irs can get more money fun the ones already not making enough. I feel if you can’t tip than you should have gotten it to go! People who have never worked for tips don’t understand that it’s hard work for the Lil pay you do get!

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