FlyerTalk Forums - View Single Post - Tipping v. fixed service charge
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Old Oct 24, 2014 | 3:40 pm
  #2  
redheadtempe33
 
Join Date: Apr 2010
Location: ORD
Programs: UA Silver
Posts: 1,818
From the article:

"As opposed to tips, a service charge becomes part of the restaurant’s overall revenue. The restaurateurs say the service charge component will be used exclusively for employee wages, benefits and payroll expenses."

Right ....

This is good for diners, but terrible for employees. In California I believe servers are paid the full minimum wage anyway, so they are essentially taking a rather large pay cut, and hoping the restaurant passes along some of that "service" charge.
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