My brother recently started a new job at a major restaurant chain. Last week was his first time serving, and at the end of the night, he was told that he needed to pay them the total amount of credit card tips that he earned, and that he would be reimbursed for it on his next paycheck. He was able to keep whatever cash tips he earned, but had to lay out $75 to cover the credit card tips. Obviously, this can add up to quite a bit of money by the end of the week, and he ends up not coming home with anything, since all his cash tips go to cover the credit card tips.
Has anyone here ever heard of this before? Supposedly, next week his paycheck will reflect the intitial $75 that he earned in tips, plus the $75 that he's going to be reimbursed, so he will get the money back, but it doesn't seem fair that he should have to lay it out.
Thanks!
2007-03-24 10:18:01 · 4 answers · asked by Soon2BMarried2007 1 in Business & Finance ➔ Careers & Employment
I also have never heard of a restaurant doing such a thing.
2007-03-24 10:30:26 · answer #1 · answered by Primdiva 3 · 0⤊ 0⤋
never heard of this before. I dont understand what it is he is "covering" . If he gets the tips they have already been paid by the card holder.
This might make more sense if the rstaurant was doing tip pooling , where all the tips are put together and then people like the dishwasher and busboys get a small share of it.
2007-03-24 10:32:42 · answer #2 · answered by mark 6 · 0⤊ 0⤋
I just checked with a Red Lobster restaurant here in town and they get the tips that night less the income tax. What they get in cash they have to keep track of and report at tax time.
2007-03-24 10:34:08 · answer #3 · answered by John P 6 · 0⤊ 0⤋
Never heard of it before. Your brother is floating money to the restaurant for free and may never see his tip. Tell him to run, do not stop and head for another place
2007-03-24 10:25:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋