Practices · Observable
Surcharge with no stated destination
A mandatory fee labeled kitchen appreciation, living wage, wellness, health, or similar, with no statement of where the money goes.
A fee's label is chosen by the business. Names like kitchen appreciation or living wage describe a purpose, not a legal category, and a customer cannot tell from the receipt whether the money reaches the people named.
This record stores the label verbatim and whether any disclosure was seen before the bill arrived.
Spot it on your receipt
- Copy the fee's exact name from the receipt.
- Note whether the menu or a sign mentioned it before you ordered.
- Note the percentage or dollar amount.
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