Legal Question in Consumer Law in California

Gratuity

When my friends and I go out to eat sometimes the restaurant adds a 15-18% gratuity (depending on the size of our group). What is CA law regarding gratuity? Is it mandatory?


Asked on 11/30/04, 1:54 pm

1 Answer from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Gratuity

"Mandatory gratuity" is an oxymoron, isn't it? But most restaurants demand 15-18% on parties of six or more, because the experience of many restaurants is that such parties will often split the bill in a manner that stiffs the waitperson. Remember that waitpeople survive on tips, and the IRS taxes them according to the amount of tips estimated to be received. As long as the policy is printed on the menu, by ordering food (in my opinion) you and the others in your party have agreed to this term of the contract. I have heard of some cases where groups of people refused to pay, and were arrested and charged with theft of service. Maybe that is bad for advertising and a little over the top. Then again, maybe it isn't. Nobody is holding a gun to your head and forcing you to eat there. If you think this policy unfair, you and your friends are at liberty to find another restaurant where stiffing waitpeople is allowed; or you can eat fast food; or you can invite them all over to your house for a home-cooked meal.

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Answered on 12/01/04, 7:32 pm


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