HR Management & Compliance

News Notes: Court Says Restaurant Can Deduct Credit Card Service Fees From Tips

California law forbids employers from taking any part of an employee’s tips. But a trial court has decided this rule didn’t prevent The Castaway restaurant in Burbank from withholding a portion of waiters’ tips that were paid with credit cards to help defray charge card transaction fees the restaurant had to pay. The state Labor Commissioner’s office said it intends to appeal the ruling.

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