After our post last week about a new law that requires restaurants to record automatic gratuity as employee pay, we heard a range of feedback from restaurant leaders. Some shared their experiences with adapting to the new law. Others shared concerns they see moving forward. One thing is sure: the new law has people talking.
In most American restaurants, it is common policy to apply an automatic gratuity of at least 18% to tables with six or more guests. Beginning this month, however, a new tax law from the IRS will require this automatic tipping practice to be considered part of a server's hourly pay instead of take-home pay at the end of a shift, potentially affecting not only servers, but owners and restaurant policies.
Notes, or modifiers, will customize any menu item with any preference, instruction, or price, like "No Sour Cream" or "Extra Cheese $1."