Is it legal for restaurants to add automatic gratuity...

[Daisys and Diamonds]

I've lived with both systems, and can see both sides - but personally, I prefer the tipping system. The minimum wage here is nearly $17/hr, which I support completely, but my goodness are Aussie wait staff terrible. There is no motivation for them to do their jobs well. They don't do things explicitly WRONG (to the point of being addressed by management), but nor do they expend an extra iota of effort. I've had two exceptional servers in 9 years, and left them both extra tips, hoping they'd tell their coworkers, lol.

The minimum wage here is now $20 which is very high imho
We don't tip here
but in American some staff are on sich low wages they need it to survive

 

[Daisys and Diamonds]

Probably what we pay here in Australia! So many people are horrified by the prices here. I know I look forward to eating out more in the US because it is so much cheaper.

My husband and I often refer to Australia as Switzerland in the pacific.

Have you ever eatern out here, across the ditch ? And im not even talking about high end

 

[MRBXXXFVVS1]

@Dancing Fire What did the server say after you mentioned they saved you 5%?

 

[Elizabeth35]

Many restaurants disclose on the menu--'X% gratuity automatically added for parties of X or more". My understanding is it is legal as it is considered a service charge.
If you don't like it---find a restaurant that does not do this, or eat at home.

Calculating the tip pre-tax is, to me, nit-picking and being cheap. Even if the tax is 8% on a $100 tab--you are talking about $1.20-1.60 for 15-20%. Seriously--you can't afford another buck?

If the restaurant automatically adds, say 15%, for a larger group, I would always add more for good service. Especially for a large group which can be quite demanding.

To make a snarky comment that you left 15% instead of 20% is really bad form. The server does NOT make the decision on automatic gratuities and you need to take up any objections with the management.

 

[Elizabeth35]

But here in America everyone wants everything CHEEEEEAP and they don't give a crap out who gets hurt.
Can you say, WalMart?

Very true.
I would happily pay 20, even 30% more in restaurants to know the servers were paid well.
Some restaurants tried this (pre-COVID) and unless you live somewhere progressive it doesn't work.

 

[Dancing Fire]

If the restaurant automatically adds, say 15%, for a larger group, I would always add more for good service. Especially for a large group which can be quite demanding.

What if their service was horrible and I don't think they deserve 15%?
AFAIK...all gratuities are optional.

​

 

[Dancing Fire]

@Dancing Fire What did the server say after you mentioned they saved you 5%?

They say we aren't that greedy. I know they regret it after I told em.

 

[Elizabeth35]

What if their service was horrible and I don't think they deserve 15%?
AFAIK...all gratuities are optional.

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If you truly felt the service was horrible--that is a situation where you speak with the manager. Politely ask that the gratuity be removed or adjusted.
If you are justified, I can't imagine any restaurant not trying to placate you by removing the gratuity.
Gratuities are optional in the US but expected as part of the servers pay.
Worst case--tip 10% but let the management know how they failed.
Most restaurants will try to make it right via a discount on the tab or a voucher for future use.

 

[voce]

I wish they'd just charge more and pay better and shit-can the whole gratuity system.

I have to interact with a zillion other employes who are not on a tip system.

Expecting your customers to use their money to motivate employees to do their job well is lazy management.

The labor laws in the US, and in particular, CA, make it very tricky (numerous pitfalls) when you are managing employees. As an employer if you accidentally overmanage your employee, you are on the hook for lots of liability if your employee sues.

But here in America everyone wants everything CHEEEEEAP and they don't give a crap out who gets hurt.
Can you say, WalMart?

Speak for yourself, not everyone. Both my fiance and I avoid Walmart as much as possible. If I had the choice of Walmart or Target, I'd go with Target 10 times out of 10.

 

[ame]

It's plenty legal. And for large groups, I don't have an issue with it, say 8 or more. It prevents a large group from running your butt off as a server and then not tipping you even if it was great service, not to mention how much time it takes for a large group with ordering and keeping up with drinks and getting the orders correct and out in a timely fashion.

But for the average table it's unnecessary.

If restaurants would just go to a living wage and not pay the servers $2.xx an hour and make them rely on tips to make up the difference, this would be a moot point.

 

[Dancing Fire]

It's plenty legal. And for large groups, I don't have an issue with it, say 8 or more. It prevents a large group from running your butt off as a server and then not tipping you even if it was great service, not to mention how much time it takes for a large group with ordering and keeping up with drinks and getting the orders correct and out in a timely fashion.

If that is true then why stop at 18% ? what is stopping them from charging 25%?? , and if I don't have enough money in my pocket to cover the tab + the 18% tip then what ? call the cops and arrest me?

 

[OreoRosies86]

Whatever servers make putting up with the general public these days is not enough.

 

[Elizabeth35]

If that is true then why stop at 18% ? what is stopping them from charging 25%?? , and if I don't have enough money in my pocket to cover the tab + the 18% tip then what ? call the cops and arrest me?

If you can't afford an 18% tip--you should not be eating in a restaurant. Perhaps a fast food restaurant is better for you-no tipping.

 

[elizat]

If you can't afford an 18% tip--you should not be eating in a restaurant. Perhaps a fast food restaurant is better for you-no tipping.

I rarely comment on certain threads, but this all the way.

If someone is going to be concerned about tipping under 20%, it seems like their budget would be best spent not eating out at a restaurant where there is service. Or perhaps eating at home.

 

[ame]

If that is true then why stop at 18% ? what is stopping them from charging 25%?? , and if I don't have enough money in my pocket to cover the tab + the 18% tip then what ? call the cops and arrest me?

If you can't afford to tip, you shouldn't be eating in a place where servers work for tips. And there is nothing to stop them from making it a mandatory 20% or 25% -- but if they have a set mandatory that is disclosed in writing, it's likely set in the computer that way based on the party size, and it's automatically figured to be 18%, and some people, like myself, ADD TO THE TIP over 18% because I've been a server and it is not an easy job, especially given the pathetic wage they're paid which tips are expected to cover the difference of.

 

[Dancing Fire]

If you can't afford an 18% tip--you should not be eating in a restaurant. Perhaps a fast food restaurant is better for you-no tipping.

Is not if I can afford the 20% or not. I just don't think is legal to add to my tab.
btw, I'd tip 20% and we dine out at least 5X per week.

 

[Elizabeth35]

Is not if I can afford the 20% or not. I just don't think is legal to add to my tab.
btw, I'd tip 20% and we dine out at least 5X per week.

We have confirmed it is legal--what is your point?

 

[Matata]

For the foreseeable future, because of covid and wildfire impacts in my area which has ripped thousands of lives to pieces, the tip I leave is equal to the cost of the meal unless the service is atrocious at which point, I'll leave minimum amount and let the person know why. $100 meal = $100 tip etc.

 

[jaysonsmom]

Funny story, my son who is home for the summer from college just told me when he goes out with his buddies in groups of ~10, none of the 19 year old kids know that gratuity=tip! So they have been going out to all you can eat sushi or all you can eat Korean BBQ and paying about $25 meal + tax + 18% automatic gratuity + 20% "tip"!

When I explained that gratuity=tip, and he was so relieved.....he said he has been paying about $40+ per meal and that is a LOT for a college student with little to no income.

 

[missy]

We haven't eaten out most of this pandemic but the two times we did go out to eat (outside) we have left very large tips. And we are big tippers to begin with but now even more so. For all those people who showed up and are still showing up to work it is important to show our appreciation. And that is how we show our appreciation. As well as being nice and polite. But money talks and I don't know anyone who wouldn't appreciate more money especially as a server in a restaurant. Hard work for very little pay.

 

[Elizabeth35]

We haven't eaten out most of this pandemic but the two times we did go out to eat (outside) we have left very large tips. And we are big tippers to begin with but now even more so. For all those people who showed up and are still showing up to work it is important to show our appreciation. And that is how we show our appreciation. As well as being nice and polite. But money talks and I don't know anyone who wouldn't appreciate more money especially as a server in a restaurant. Hard work for very little pay.

Yes to this!
We always tip generously, but doubled our tips during COVID. Same for grocery deliveries--doubled our normal tip.

Skimping on a tip for a server is the worst kind of cheap to me.
If there is a true service issue---take it up with the manager so they are aware and can remediate.

 

[tyty333]

Funny story, my son who is home for the summer from college just told me when he goes out with his buddies in groups of ~10, none of the 19 year old kids know that gratuity=tip! So they have been going out to all you can eat sushi or all you can eat Korean BBQ and paying about $25 meal + tax + 18% automatic gratuity + 20% "tip"!

When I explained that gratuity=tip, and he was so relieved.....he said he has been paying about $40+ per meal and that is a LOT for a college student with little to no income.

I'm sure the servers really appreciated your son and his friend's tips!

I remember when I was in college (several centuries ago ) a fast food meal of $5 would push my budget!