When dining with larger groups, frequently a bill includes "mandatory" gratuity in the amount of 17-20 percent. I do not have an issue with this added gratuity since it is a posted policy that is (typically) clearly printed. However, I've seen several instances of restaurants charging gratuity on the TAXED amount of the bill. This seems odd to me since the taxed portion does not relate to the service provided. For example, if a dinner bill sub-total (party of 6, let's say) is $200 and the local/state sales tax is 8 percent, the taxed amount would be $216. Let's also say that an 18 percent gratuity is included. In my mind the gratuity should be $36 ($200 X 0.18). But what I often see is a gratuity on top of the taxed amount of $216 (in this case) which would translate to $38.88. What gives?
2007-01-11 05:15:47 · 7 answers · asked by loanthony 1 in Dining Out ➔ United States ➔ Other - US Dining Out
I believe it is legal, but I can't seem to understand why that's so. but, I would also not quibble about an extra 3 bucks. The server is making sure that everyone gets their ordered meal, and after all, the 3 dollars for 6 people is only $.50 p/person
2007-01-11 05:34:31 · answer #1 · answered by wellaem 6 · 1⤊ 1⤋
Even though its perfectly legal (being that gratuity is really optional) you can demand that the amount be adjusted to reflect the cost of the meal. Being that waiters make about $3 an hour on the clock and sometimes get stiffed from 2 party and 3 party tables that they always have the mindset of recouping their costs out of those who are willing and able to make up for the difference. So of course they are going to "mistakenly" charge you on the tax to get as much money out of you as they possibly can. And they get away with it simply because nobody challenges it.
2007-01-11 14:56:37 · answer #2 · answered by Joe K 6 · 1⤊ 1⤋
Completely legal, but in my opinion, unethical. Bring the issue to the management's attention to see if they would re-consider. You've got nothing to argue other than your continued business.
2014-10-13 12:37:18 · answer #3 · answered by Casey Y 7 · 0⤊ 0⤋
I'm sure it is legal, but if it is the right thing to do or not, would be up the each restaurant to decide. Then again, when I am adding the tip in on my own, I always just go by the grand total, so I guess you do have a point.
2007-01-14 18:37:20 · answer #4 · answered by ShouldBeWorking 6 · 0⤊ 1⤋
It's just easier to figure on the grand total, which is how gratuities were figured. Besides, if you didin't like the service, complain to the manager and you will get some of that back.
Oh, it's not dishonest, just kinda tricky
B-Cool
2007-01-11 13:36:38 · answer #5 · answered by Anonymous · 0⤊ 2⤋
Unless you can find a law that prohibits it, it's legal. I don't know what state you're in, but I am aware of no such law.
2007-01-11 13:26:12 · answer #6 · answered by Anonymous · 1⤊ 1⤋
Depends on the law in your area. YES...IT IS Legal.
2007-01-11 13:23:52 · answer #7 · answered by nmd_elkie 3 · 0⤊ 1⤋