Anyone who’s ever been a sever has been there: it’s the end of a brutal shift filled with cheap, obnoxious people, you wanted to be out with your friends but couldn’t get the shift covered, and – to make matters worse – you realize you basically made about 11 per cent tips on your sales despite busting your ass with a smile.
But, to make matters even worse, you have to give “the house” (AKA your employer) some of your hard-earned tips.
And it’s usually not a percentage of your tips, either, but of your sales (2-5 per cent before tax). Meaning, by the time you “tip-out” on days like that, it’s a pretty depressing journey home. I mean, it’s one thing to tip-out your fellow hard-working bussers and hostesses, but giving to the house is just an added blow to your dwindling stack of “tip money.”
And no, you definitely won’t be cabbing home after a shift like that.
Historically, it’s been standard practice for a restaurant to take a cut of the tips earned by servers, presumably to cover the costs of things like broken dishes, mistake orders, and credit card transactions, or to boost profits. The practice has become more prevalent in recent years thanks to the rise of minimum wage costs.
Of course, tips are a major part of any server’s income – I’m pretty sure I funded my university lifestyle on tips alone. That’s why a growing number of associations representing employers and servers have spoken out against tipping-out to the house, claiming it cuts deeply into their take-home cash.
Now, after five years and four versions of the bill, service industry workers (whether servers or spa employees) in Ontario will soon be protected from employer cuts as management will no longer be able to dip their fingers into their employees’ tip jars.
As gratuities left on credit and debit cards are the most commonly skimmed, the bill now requires employers to turn those over in full. Not doing so, and lack of transparency has particularly been a long standing issue in spas. Not surprisingly, the bill allows management to set formal tip-sharing policies that will allow for fair division of tips for employees like the kitchen staff, and other support.
While restaurant owners likely aren’t thrilled with the news, the law will make the lives of hard-working service employees a little more rewarding. And if they’re happier, they’ll probably give better service anyway. In the end, everyone should win with this.
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