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steakpit · 05-09-2009, 03:51 PM

Hello!

I hope someone can help me out.

At the end of the night when our servers close their shift and print out their sales report to figure out how much cash is owed to the house, how much tips to receive etc....our POS (point of sale) system automatically deducts 4% from our server's credit card tips. The reason is because the 4% goes towards the CREDIT CARD PROCESSING FEE.

So I have servers (mostly new servers) who inquire about the 4% b/c they say they rightfully is owed the amount of tip given from the tips. Of course, I understand what my servers mean but its honestly a huge hassle trying to go into the software to change that and honestly the restaurant is a bit slow so getting hit with another payment owed to the credit card companies is a bit of an inconvenience. So can someone tell me if this is illegal?

And if its not illegal-- employers DO take out a certain percentage from employee's tips to cover for the credit card processing fee right? B/c some of my other servers say that they are familiar with this process because their former employers did something similar too..

Please let me know. I have a great employee who keeps on getting upset about this and I dont want to lose this employee. Thank you!!

05-09-2009, 03:51 PM	#1 (permalink)
steakpit Junior Member Join Date: May 2009 Posts: 1 User Status: Offline	credit card tips Hello! I hope someone can help me out. At the end of the night when our servers close their shift and print out their sales report to figure out how much cash is owed to the house, how much tips to receive etc....our POS (point of sale) system automatically deducts 4% from our server's credit card tips. The reason is because the 4% goes towards the CREDIT CARD PROCESSING FEE. So I have servers (mostly new servers) who inquire about the 4% b/c they say they rightfully is owed the amount of tip given from the tips. Of course, I understand what my servers mean but its honestly a huge hassle trying to go into the software to change that and honestly the restaurant is a bit slow so getting hit with another payment owed to the credit card companies is a bit of an inconvenience. So can someone tell me if this is illegal? And if its not illegal-- employers DO take out a certain percentage from employee's tips to cover for the credit card processing fee right? B/c some of my other servers say that they are familiar with this process because their former employers did something similar too.. Please let me know. I have a great employee who keeps on getting upset about this and I dont want to lose this employee. Thank you!!