I bartend in Texas and my employer takes something like 1% of our credit card tips.?
Mar 15, 2010
in
Credit Card Machines
They say it is for using the credit card machines. On average it is like but sometimes can be as much as . That adds up over time. On average they make like a night on this. Just want to know if it is legal.
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6 comments
Jim on March 15, 2010 at 11:55 pm
Hey, if it wasn’t put on a credit card, you would get - 0 - . Go with the flow & be glad you have a job. . .
Realtoratheart on March 15, 2010 at 11:55 pm
I’m confused. They take 1% of what people designate as a tip? So they are sharing the tips? Doesn’t seem fair to me. Maybe you could check with the local EEOC.
knowitall on March 15, 2010 at 11:55 pm
The establishment must pay up to 5% to the credit card processor, so 1% is a good deal.
bdtxpress on March 15, 2010 at 11:55 pm
No. They cannot LEGALLY do this. They are trying to make you cover the fee for their accepting of credit cards. Which is not a good practice for them considering you people who are paid tips, are usually paid a lower hourly wage, and they have to allocate tips, including ad from their profits to make sure your wages equal up to ATLEAST minimum wage, which currently is $7.25 per hour. So if you are not making at least minimum wage, then the answer is no they cannot do that. If you are short of making at least minimum wage due to their taking 1% of your tip to offset their costs of accepting credit cards then you need to call the United States Department of Labor, Wage and Hour Division. However, I will point out, if you are making a single penny over minimum wage, even with them taking your tips like that there is absolutely nothing they will do for you. Also, it will most likely have to be investigated for them to know whether or not you were shorted your average of minimum wage which could put you at risk of being fired by your employer for making the complaint. Something they could fire you for, and even openly admit that is why they did it. Thanks to the people who came up with "at will employment".
godged on March 15, 2010 at 11:55 pm
Not sure if that is legal, but it sure does stink from an employee stand point. That is a cost of doing business that he is passing along to the staff. If I were you, I would call around a bit and see what you can learn about this.
Loobylou on March 15, 2010 at 11:55 pm
I’m not sure whether or not it is legal or not, but in the UK, we get taxed on credit card tips - so we prefer if customers leave actual cash tips. Also, it does cost the employers for every transaction on the machines.
If this happens in Texas, it could be one of the reasons why your employer is taking a cut - so they can re-compensate money they have spent paying tax/using the machines.
If you are unhappy about this, try encouraging your customers to leave cash tips - just explain that you get taxed on credit card tips so only end up with a small percentage of the tip.