Practices · Observable
Automatic gratuity on small parties
A mandatory gratuity percentage was added to the bill for a party smaller than six.
Automatic gratuities were once reserved for large parties. When one appears on a bill for two, it is a mandatory charge, and under federal law a mandatory charge is not a tip.
This record notes the percentage and the label printed on the receipt. Whether the charge reaches workers depends on state law and the business's own practice; see the Law block on each record.
Spot it on your receipt
- Note the party size and the percentage.
- Note whether a tip line was still printed under it.
- Keep the receipt.
On the record
Locations with a published claim that fits
Ordered by the number of independent reports behind the claim, keeping only claims where at least one linked report describes this practice.
No published record fits this practice yet.
Law
The federal baseline
Federally, a mandatory service charge is not a tip. It belongs to the employer unless a state or local rule, or the employer's own representation, directs it to workers.
Source: 29 CFR 531.55 · Verified 2026-09