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Thread: Georgia Law on Gratuity Distribution Georgia

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    Default Georgia Law on Gratuity Distribution Georgia

    I work at a golf course...we hold many tournaments and events where the contract clocks on an additional 20% gratuity. My employer is withholding a large percentage of this gratuity. I was curious if he is allowed to do this or if the whole gratuity is meant to be distributed among the servers/bartenders working the event. Considering we do not get any other additional tips because the contract states there being a 20% gratuity added. The contract states "gratuity" not "tips"

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    http://www.dol.gov/esa/whd/regs/compliance/whdfs15.pdf

    Service Charges: A compulsory charge for service, for example, 15 percent of the bill, is not a tip. Such charges are part of the employer's gross receipts. Where service charges are imposed and the employee receives no tips, the employer must pay the entire minimum wage and overtime required by the Act.
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    Thank you for your quick post...I did look at the website you posted. One quick question...is this the same if it states in the contract that the 20% gratuity (not service charge) will be added to all food and beverage? does that statement define gratuity as a "tip?"

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    It does apply to tips also. The entire 20% is distributed to the servers?
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    I think what the poster is asking is if the definition of a "service charge" would include the word "gratuity".

    In otherwords, if the contract stated "20% tip included" then the 20% would legally have to be distributed to servers/bartenders, ect and not owned by the business, where as the word "service charges" gives that 20% to the business.

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    The contract states "20% gratuity will be added to food and beverage"
    The full gratuity was not distributed fully to the servers/bartenders. It used to be until a new GM was put in place. My question is....should something stated as "gratuity" be distributed fully to servers/bartenders.

    Thank you for all the help

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    Once a gratuity is automatically added, it's usually considered a service charge. You might refer to DAW's post for the answer to your question.
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    Agree with Betty, but the better answer is that actually, a "tip" is defined as a "gift" which the customer can choose to give or not give and the customer determines the amount. Once the amount/percentage is fixed, the customer no longer has a choice and it is now a service charge.
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    Good answer, Patty.
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

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    Quote Originally Posted by Betty3 View Post
    Good answer, Patty.
    Maybe I should go on Who Wants to Be A Millionaire?
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    Thank yall :-)

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    Quote Originally Posted by Pattymd View Post
    Maybe I should go on Who Wants to Be A Millionaire?
    "Good answer" is Family Feud.
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

    Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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    Quote Originally Posted by Destin985 View Post
    Thank yall :-)
    You're very welcome.
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

    Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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    Quote Originally Posted by Betty3 View Post
    "Good answer" is Family Feud.
    Whoops. Millionaire is Final Answer.
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