How do we know tips from CC’s or online ordering actually go to the workers?

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Call me cynical, but couldn’t the business just keep all the tips and make up any tip figure to tell their employees?

In: Economics

5 Answers

Anonymous 0 Comments

The servers get to see a lot of the signed bills before the management does Also, while they occasionally get stiffed, it would be highly unusual for them to get zero tips in a day. And the credit card receipts still exist if there is a dispute. Wage theft is underenforced, but if a company gets caught, it can go very badly for them.

This is not to say that the owners don’t skim tips. They’re just more likely to do it by doing something like distributing the tips among all the staff and/or just saying management gets a share, and daring the servers to do anything about it.

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