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Tips Credit Card Surcharges

Parker Poe Adams & Bernstein LLP

Employers Limited in Service Fees Deductions From Credit Card Tips

Restaurants and some other businesses that use employees partially compensated by tips can claim a tip credit toward the Fair Labor Standards Act’s minimum wage requirements. However, the FLSA strictly regulates the servers’...more

Littler

Fifth Circuit Declines to Broaden Permitted Deduction of Credit Card Fees from Tips

Littler on

The U.S. Court of Appeals for the Fifth Circuit concluded on June 14, 2016 that an employer may not deduct more than the actual credit card fees associated with liquidated credit card tips for employees without compromising...more

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