Complete Labor Law Poster for $24.95
from, includes
State, Federal, & OSHA posting requirements


No announcement yet.

Is it legal to deduct a processing fee

This topic is closed.
  • Filter
  • Time
  • Show
Clear All
new posts

  • Is it legal to deduct a processing fee

    Hello, I work as a server in a privately owned restaurant in the Lansing area in Michigan. My employer deducts a credit card processing fee from my tips every day! Is this legal? In addition, I'm forced to claim a cash percentage based on my credit card tip percentage. Is this legal? Thank you very much for your time. RJT

  • #2
    The applicable credit card processing fee CAN be passed through to you, but ONLY on tips charged, not on the food, beverage and taxes charged.

    You CANNOT be forced to claim any more tips than you actually receive, net of anything you may be required to contribute to a tip pool.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


    The forum is intended for informational use only and should not be relied upon and is not a substitute for legal advice. The information contained on are opinions and suggestions of members and is not a representation of the opinions of does not warrant or vouch for the accuracy, completeness or usefulness of any postings or the qualifications of any person responding. Please consult a legal expert or seek the services of an attorney in your area for more accuracy on your specific situation.