Stiffing the waitstaff--and customers?

I hope this is the appropriate place to post this.

My friend "Bob" works as a server at a pasta joint and enjoys his job: he likes his co-workers, the customers are usually very nice, and he makes decent money. Up until now, his only beef is that the (new) owner occasionally comes in for dinner and gets great service but never tips. However, this doesn't really bother him, since he only waits on him once in awhile and otherwise likes his work and it's paying his bills.

However, recently Bob worked a party, attended by 30 people, all of whom ordered separately: one bill, but 30 different orders, not banquet-style. There were two waitstaff, Bob and another server, and they worked from 2 til 10, much of that time spent running food and drinks up the stairs to the party room. At the end of the night, the built-in 15% gratuity came to $300. Bob and his coworker were happy--they'd worked hard, but they got to take home $150 each, right? Wrong. The new owner's policy is that servers at a party don't get to keep the tip--they are paid only $7 per hour to essentially wait on a full restaurant's worth of customers. Upon hearing this, the other server quit on the spot. But Bob really needs this job, and doesn't know what to do.

Personally, I think he got the shaft, but I realize that he doesn't have the luxury of quitting, or really even of telling the management that he won't work parties anymore, and this place does alot of parties. But also, what about the customers, who happily forked over an extra $300 in tips, never guessing that it was going straight into the owner's pocket?

This whole thing really burns me. Anyone have any thoughts? Isn't it illegal to charge customers a gratuity that isn't actually a gratuity in the classic sense? I know that I would never eat again at a place that was this dishonest to customers and downright mean to its staff!

I hope he's at least looking for another job.

Would it be possible for you, and maybe some of your friends, protest to the owner without jeopardizing Bob's job--until he's found a new one?

Personally, I would have walked at that point. It is not THAT difficult to locate a serving position.

I would be interested in knowing where NOT to eat again, but for his sake, please don't post the name of the place publicly.

I'd also like to know the name of the place so I can make sure to never eat there. That's just wrong.

Unfortunately he just started this job three weeks ago after being out of work for awhile due to a back injury--he really can't just walk away, he has no money left and no insurance. Other than this (admittedly horrible) issue he likes his job and the people he works with, and thinks that maybe if he just avoids working parties...

I think he'll definitely look for something new, but it's really not so easy to find a good serving job these days if you don't have tons of experience...


eta: I pm'd those interested in knowing the name of the place, if anyone else would like it, let me know.

Pretty crummy. I'd wonder about Bob's W-2 at the end of the year, too. If he's being required to work a bunch of parties at just over minimum wage and no gratuity he should make sure (assuming he stays that long) that his earnings aren't overstated or that the government doesn't assume they are understated and automagically tack on their estimate of earnings via tips. No doubt the owner is reporting all of these gratuities he's skimming.

Bob should keep at it while looking for someplace owned by a better class of person.

The owner sounds to me like he's making himself extremely susceptible to his entire waitstaff announcing, just after one of those big parties has been seated, that unless they get their tips that night, he can wait on them all by himself.

Mike G, I think that's a great idea. I'll suggest that to him. Or maybe the owner will soon come to his senses when his employees unanimously refuse to work parties, now that they all know that their "reward" will be more work for (much) less pay.

This whole thing makes me even more appreciative of the many restaurants that are both tasty for the customer and good to their employees. I am always relieved when I meet someone who works at one of my favorite dining spots and they tell me that they love working there. Avec immediately springs to mind as a good example of this.

Hi,

If the owner sounds like the 'prince' you've described. After the mutiny Mike G suggests look for the staff to be fired soon after.

The suggestion to review W-2 or check stubs is very wise advice. I remember reading once of a janitor who did check his check stub uncovering an embezzlement for falsely stated income, most of which he never saw because the difference was pocketed. More sophisticated employees in the company had never paid attention, though they were paying taxes on money never received.

He may want to discretely contact the Illinois Department of Employment Security about his employeers abrupt change in tipping policy after the fact. They will advise if they can be an advocate, which your friend may want to pursue though it requires collecting information and witnesses to support his accusation.

Reality is your friend needs to spend his spare time looking for a new job. His feeling cheated by the boss is not going to go away.

Regards,

Don't Agonize, Organize.

Tell your friend to contact one of the service workers unions around (there are several). Servers can organize to prevent this type of management injustice.

Even fairly small establishments (not too small) can be unionized.

An anonymous call to the IRS wouldn't be a bad idea, either. The waitstaff is going to be taxed next year on income they didn't receive, income that is clearly stated as being tip money (meaning that the owner is not only crooked, but dumb as a pumpkin, as well). Shouldn't be too hard to nail his felonious ass....

Sounds like a call-in-sick day's in order next time there's a big party (Damn, that back's acting up on me again!)

Have your resume ready.

The last time that I was a union member in a food service setting (AFSCME in Detroit), we were paying more in union dues (our average rate was $8/hr) per week than the UAW members were (at $26/hr). And we were making LESS than our counterparts at the non-union hospitals in the vacinity.

Everytime I think about it, I thank my wife for encouraging me to get out of the food service and restaurant business ... Loved the work but it is one industry that does not really appreciate or properly compensate talent.

geli wrote: The new owner's policy is that servers at a party don't get to keep the tip--they are paid only $7 per hour to essentially wait on a full restaurant's worth of customers.

Follow the money.

Every state has a Wage and Hour Board, and in cases like this, they are your friend. As a proprietor, you do NOT want to mess with Wage and Hour--next to the Revenue Dept responsible for collecting sales taxes, they are the most tenacious of public servants.

Service staff either work for tips at a state mandated reduced minimum wage with the minimum tips required to be declared to make up the difference to the universal minimum wage, or work for at least the minimum wage (i.e. $7.00).

Do the waiters earn $7.00 per hour every hour they work? Or, do they earn a 'reduced' hourly wage and declare and pay taxes on their tips?

It can't be both ways.

Its proposed that you go down to the State Wage and Hour board and file a complaint for the denied tips. Or, depending on the circumstances, a Wage and Hour complaint be lodged to claim the $7.00 per hour wage rate for ALL hours worked--including hours worked during which tips are declared (and in the future--declare less in tips!).

Dating from the beginning of your employment through the most recent pay period, have all your pay stubs in hand showing hours worked, tips declared, hourly wage rates paid and taxes withheld. You don't need a lawyer. Go down to Wage and Hour.

Real World: Your friend is in a tough situation. If switching jobs right now is out of the question, he can save pay stubs, keep a hand written daily record of hours worked and wages paid (like a mileage diary) and bide his time. Once he's left his current position, he can then file a Wage and Hour complaint--which in all likelihood will make him more than whole.

Revenge is a dish best served cold.

I second the recommendation of Dept of Labor complaint. The relevant phone numbers in Illinois are, for wage claims (e.g. my employer didn't pay me last week, when I was fired or quit they owed me vacation pay they didn't give me)312 793 2808; and for minimum wage claims (probably the issue here), 312 793 2808.

The real CRUX of the issue is what the employer AGREED to pay the employee. If an employer says that he is going to pay his waitstaff $7 and hour and then socks the client with a 15-20% service charge, more than likely, no violation of the law has occurred. If an accounting firm pays a staff accountant $25/hr and bills for $125, the staffer has no real basis for complaint. The DOL doesn't generally like to get involved in pay disputes. They will get involved when there is work off the clock, not being paid for time worked, and all that stuff.

When I worked for "mom and pops" (which usually meant that YOU had to make sure that you weren't ripped off), I tried to get everything DEFINED and in WRITING before accepting employment UPFRONT. If they are not willing to do that, generally they are the types that you don't want to work for.

My wife, the Chow Poodle, used to work for the IL Dept of Labor. I know for a fact that they take all claims of that sort very seriously and are more often on the side of the employee than the employer when it comes to setteling disputes.

Isn't the issue really going to end up with the IRS? Who has declared this 'tip' as income? In the restaurants I've worked at if any portion of the tip is given on a credit card they were automatically reported to the IRS as income by the restaurant. If the server is declaring this income and the hourly wage does not equal the amount of compensation that he would receive from the gratuity, the owner is stealing from his employees.

It's very easy to hide cash tip income, but credit cards leave a paper trail.

Flip

To add insult to injury, Bob's paycheck bounced. However, they did make good on it (with cash), just prior to announcing that the restaurant is closing, effective almost immediately...so there you go. Near-instant karma.

I read in a book while I was planning my wedding to ask if the required gratuity went to the staff as actual gratutity. I asked and was told that the staff was paid generously to work events such as weddings and that the standard pay came out of the gratutity allowance. If I happened to overpay, the extra money stayed in the event 'kitty' in case some other event ended up needing extra workers and the gratuity didn't cover the workers' pay. So essentially, I paid $60 per person for just food and liquor w/o service, and the 18% gratuity paid the workers.

Needless to say, I felt no need to overtip. The workers were great, but considering that the catering manager served the wrong potato side, served the top of my cake that you typically save for the first anniversary, blamed it on the baker (how?), and stopped serving cake when they ran out of plates (???), I felt he could answer to the workers about my dissatisfaction with the venue in question.

*sigh* Nearly 2 years ago and I still have major resentment...I wish it wasn't so, but it just is...

Anyway, ask the question, you may be surprised by the answer!

Christine

geli,

The situation smelled funny from the get-go. I can only guess the boss usurping the tip was to rob Peter to pay Paul.

My regrets to your friend, who should still carefully read his check stubs.

Regards,