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View Full Version : Can a Restaurant take part of the Tips to cover for Credit Card Transaction? Texas


Realfungi
12-02-2006, 10:30 PM
I have a question regarding Restaurants' rights in Texas. This situation is when a customer is paying by credit card. Can a Restaurant take a part of the gratuities that a person is giving to the server, and make us think that is is being used to cover "charges" imposed by the Credit Card Transaction Bank? (Something that I don't think should be the waiter / waitress concern.)

First of all is this legal, and shouldn't the owner to covering these charges, whatever they may be from their equipment usage as part of doing business.

Thank you.

ScottB
12-03-2006, 04:02 AM
From the US Dept of Labor web site http://www.dol.gov/esa/regs/compliance/whd/whdfs15.htm

Credit Cards: Where tips are charged on a credit card and the employer must pay the credit card company a percentage on each sale, then the employer may pay the employee the tip, less that percentage. This charge on the tip may not reduce the employee's wage below the required minimum wage. The amount due the employee must be paid no later than the regular pay day and may not be held while the employer is awaiting reimbursement from the credit card company.

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