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Can I add a “service charge” to my restaurant in New York without distributing to employees?



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Kinnek Knowledge Team

Generally, no, but it can be added in certain circumstances.  Many restaurants in New York have struggled with understanding the distribution of mandatory service charges, and have been sued and had to settle with employees in order to get out of the legal mess.  In New York, if you intend to add a mandatory service charge that is not meant to go to service employees, then you have to make it explicitly clear to customers that the charge is 'not' actually meant as a tip for service employees, but is in fact meant for some other purpose.

Jun 5, 2016

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