Topic: Tipping

Keep Your Hands Out of the Tip Jar (and Other Celebrity Chef Lessons)

Restaurant owners and managers: sometimes the best lessons from celebrity chefs don’t happen in the kitchen. The latest comes from MasterChef Graham Elliot, who recently settled a tip pooling lawsuit with Gregory Curtis and other waiters in Elliot’s Chicago restaurant for an undisclosed amount. The waiters claimed they were forced to share tips with non-waiters,… Read more »

When Is a Tip Not a Tip? When the IRS Says So…

Here’s a tip: restaurants that tack a fixed charge on certain bills must begin withholding additional taxes on those amounts. Known as “auto gratuities,” compulsory service charges paid by diners should be considered employer-paid wages—not tips—and treated accordingly for tax purposes. Law firm Pillsbury: “Employers are required to collect income tax, employee social security tax… Read more »