# Service Fee of 3% - applies to tips too

**URL:** <https://boards.straightdope.com/t/service-fee-of-3-applies-to-tips-too/997686>\
**Category:** In My Humble Opinion\
**Created:** [February 16, 2024, 11:57pm UTC](https://boards.straightdope.com/t/service-fee-of-3-applies-to-tips-too/997686 "2024-02-16T23:57:36Z")\
**Posts on this page:** 1\
**Showing post:** 2

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**Author:** ![Duckster](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/duckster/32/1244_2.png) [@Duckster](https://boards.straightdope.com/u/Duckster)\
**Post date:** [February 17, 2024, 12:58am UTC](https://boards.straightdope.com/t/service-fee-of-3-applies-to-tips-too/997686/2 "2024-02-17T00:58:48Z")

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> **Employers, Including Managers and Supervisors, May Not “Keep” Tips:** Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool. An employer may not require an employee to give their tips to the employer, a supervisor, or a manager, even where a tipped employee receives at least the federal minimum wage (currently $7.25) per hour in wages directly from the employer and the employer takes no tip credit.

> **[Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)](https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa)**
>
> Wage and Hour Division Fact Sheet - U.S. Department of Labor

> New York allows employers to take a tip credit. The amount of the tip credit depends on the employer’s industry and size and the employee’s job duties. For example, the tip credit for wait staff in a restaurant is different from the tip credit for housekeepers. You can find the minimum hourly wage employers can pay employees in the hospitality industry (which includes restaurants, hotels, and resorts) at [Summary of Wage Orders and Credits for the Hospitality Industry](https://www.labor.ny.gov/formsdocs/wp/Part146.pdf). Employees must be informed of the tip credit in writing.

> **[New York Laws for Tipped Employees](https://www.nolo.com/legal-encyclopedia/new-york-laws-tipped-employees.html)**
>
> Tipped employees in New York: Learn the rules on tip pooling, tip credits, service charges, and more.

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