Practices · Hidden
Service charge not reaching staff
Reports or official records state that a mandatory service charge was retained by the business rather than paid to service staff.
A customer cannot see this from the receipt. It comes from workers, from paystubs, or from an enforcement record. In Massachusetts, New York, Washington, Hawaii, and Minnesota, state law directs a service charge to workers unless the customer is clearly told otherwise.
On this record, worker reports carry the Reported stamp and agency findings carry the Legally confirmed stamp. They are never merged into one sentence.
Spot it on your receipt
- If you work there: does the charge appear on your paystub, and at what share?
- If you are a customer: ask, and report what you were told as relayed.
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