Legal Question in Employment Law in California

Services Charges?

In the state of California, are the restaurants who charge a ''Service Charge'' for private parties, required to pay that amount out the employees who worked that party?


Asked on 7/27/08, 8:37 pm

1 Answer from Attorneys

Michael Kirschbaum Law Offices of Michael R. Kirschbaum

Re: Services Charges?

If the customers are led to believe that the service charge is in lieu of tips, then it must be paid as a tip to the employees servicing the customer. If it is made clear to the customer that the service charge is in addition to the tip, the restaurant does not have to distribute it to the employees.

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Answered on 7/29/08, 6:58 pm


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