For those of you that have never been in the hospitality business/restaurant business please take this blog to heart if you go out to eat in a big group or party. On average in America a restaurant serves makes $2.13/hour and this wage has not changed since it was first introduced. Your tip makes up the difference and in some instances if the server does not make enough tips that puts them in their company's "Sup Pay" list. "Sup Pay" is where the company has to pay the difference to equal minimum wage and they do not like paying "Sup Pay". Some restaurant companies have been known to either fire servers for their "Sup Pay" or they move the server in question to another part of the restaurant or they do not put the server on the schedule and make them quit.
The IRS late last year sent an email to all restaurant owners stating that gratuity could not be charged to anybody no matter how big the party or group. They decided that it was at the customer's own discretion to leave a tip. Most restaurants have a gratuity button on their cash registers that figures the tip and some places charge it due to it being a late night open eatery. But now they can not no longer do this. So think about the impact that if you are a server making $2.13/hour and a table of 20 or more walks in. Before the email they would be charged 15% gratuity with their total, but now there is no charge, they make a huge mess that the server has to clean up and they leave a $2 tip for the whole experience.
How would you feel?
Thanks IRS from Restaurant Servers all over America.
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