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The difference between service charges and tips

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Badnigga77District of Columbia

Let me take a moment as a person whonhas worked in the industry to help people with the distinction legally.

Any restaurant or club the moment you see something automatically put on your check, it's considered a service charge from the restaurant. Because it comes from the restaurant not you, the distribution of that money is based (legally) sole on the discretion of the restaurant. As long as the workers are paid over minimum wage for the day they can spread the money how you want.

Tips because you leave them solely from your personal discretion are legally the property of the person it was given too. They split that with other staff as a part of tip sharing agreements they signed on to do when they started their job, but the money and transparency belongs to them by law.

So if you see anything automatic on your next outing, don't assume that goes to the person who served you.

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