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Gratuity vs. Service Fee

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  • Gratuity vs. Service Fee

    I am seeking to find out if there is a difference between a gratuity fee and a sevice fee in regard to the catering business. Would it be fraudulent to create a contract that states you are charging an 18% gratuity fee that then gets taken by the businees rather than disperesed amongst the wait staff that worked the event? And my second question would be, if you have told the staff that they would be paid on the 18% gratuity, can you then renig and pay them an hourly wage instead? Finally, can you allow restaurant wait staff to collect an 18% gratuity on parties of 8 or more and then deny banquet servers the same 18% gratuity?

  • #2
    Please see the attached.
    http://www.dol.gov/esa/regs/compliance/whd/whdfs15.htm
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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