Is a service charge a tip?

No, and the difference decides who gets the money. Under federal wage rules, a tip is a voluntary amount the customer decides to leave. A mandatory service charge(an automatic 18% for large parties, a “hospitality fee,” a “kitchen appreciation fee”) is not a tip. Legally, that money belongs to the business, which may keep it, split it, or pass it on. Some states require disclosure of where a service charge goes; most don't.

Practical translation: when you tip 20% on the line, that money is generally the worker's (or the tip pool's). When the receipt already includes a percentage, the only way to know where it goes is what the business discloses: on the menu, the receipt, or when you ask.

What's worth noticing

• A percentage added before you choose anything is a service charge, not a tip.
• Fee names like “wellness fee” or “living-wage fee” describe where the business says the money goes; the label alone doesn't make it reach workers.
• If a receipt shows a service charge and a tip line, the two amounts can go to different places.

This page describes U.S. federal rules; laws vary by state and province (in Canada, tip handling is governed provincially), and it isn't legal advice: for your own situation, contact your local labor authority or an attorney.