Academic journal article Journal of Critical Incidents

Whose Money Is It?

Academic journal article Journal of Critical Incidents

Whose Money Is It?

Article excerpt

There was no question about it; being a server at Charley's Restaurant was hard work. You were on your feet all evening, doing your best to make the dining experience pleasurable. However, there was a reward to look forward to for all of your hard work--tips.

When the practice of tipping for food service started, no one knows for sure, but the custom had become firmly established in American restaurants and bars. In fact, tips had become so common, that an acronym was now associated with the practice; TIPS, To Insure Prompt Service. And, tips had become a significant part of many food servers total compensation.

By tradition and practice, customers typically left 15-20% of the total check as a tip. During a busy meal period, tips for fast, efficient, and pleasant service could be very rewarding. Under the Fair Labor Standards Act (FLSA), restaurants like Charley's were allowed to take a tip credit and pay servers less than the federally mandated minimum wage, based on the assumption that servers received tips from their customers.

While receiving tips may seem like a simple and expected practice, the distribution of tips can become a cause for concern and dissatisfaction. When servers receive all monies left on the table and credit and debit cards the servers are satisfied, but greeters, bussers and kitchen staff can feel left out. Recognizing the importance of the whole service team, servers frequently share a small portion of their tips with bussers. Some restaurants attempt to address what may seem like an inequity by establishing tip pooling plans. In these plans, servers pool and divide all of their tips based on pre-established allocation formulas.

No matter how tips are received, it seems like someone is always dissatisfied. In fact, dissatisfaction would be putting it mildly for one server at Charley's, Katy. She was downright mad and wasn't going to take it anymore. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.