Legal Question in Business Law in Tennessee

Service Charge

I am a server in the banquet department of a motel. This motel charges the guest a ''customary 20% food service charge'' on all banquet food services bills. Although the guest are led to believe this is the staff's tip, the staff does not recieve any of this money. When I ask management about why we were not given this money they responded, ''it goes to the house for profit and loss.'' My burning question is, is that legal? Thank you, Annette


Asked on 3/03/07, 1:04 pm

1 Answer from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: Service Charge

Tennessee has a tip statute which generally would seem to require that you should be paid the amount of the tip. You should probably consult with an attorney to discuss how to go about handling this issue. If you are interested in discussing your potential claims with me, I can be contacted at [email protected].

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Answered on 3/04/07, 10:47 am


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