Legal Question in Business Law in Pennsylvania

Credit Card tips

I am a bartender and my restaurant owner is beginning a new program:

All credit card checks that have tips placed on the check will be retained and place in my paycheck. Our pay period is every other week. This means I will not be able to end a shift with all my tips earned, I'll need to wait 2 weeks before I get paid. Can they collect interest on my tips? Is this a common practice with owners? Thanks.


Asked on 10/14/04, 6:02 pm

1 Answer from Attorneys
Mark Johns Mark Johns, Esquire

Re: Credit Card tips

Credit card companies charge different processing fees. For illustrative purposes 3% is a good number. Now if your tips were $100 on the credit slips the owner is going to receive $97.00. With today's interest rates of say 1.5% the owner would have to hold the money for over two years to recoup the credit card fees he is paying.

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Answered on 10/15/04, 8:16 am


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