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Gratuity Laws- AZ

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  • Gratuity Laws- AZ

    I work in Banquets for a large chain hotel in Arizona, recently the company has decided to cap our gratuity and service fee rates at $5 an hour (we were receiving between 15-20 an hour before this). The grauity and service charges being charged to customers have remained the same. I know that workers are not entitled to all of the service fee, but what about the gratuity charge? Anyone have any info on this?

  • #2
    Are you being paid at least the full minimum wage? If so (and as a banquet server, you should be, since you do not receive tips directly from the customer), the employer can choose to reduce the amount of service charges and gratuities he passes through to the employee. Legally, he only has to pay you the equivalent of minimum wage and anything over and above that is between you and the employer only.
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