Turkish restaurant owner Nusret Gokce, also known as “Salt Bae”, takes pictures at his restaurant Nusr-Et.
Ozan Kose / AFP via Getty Images
If Salt Bae taught us one thing, it’s a dramatic way to sprinkle salt on a steak. If Salt Bae taught us two things, it’s a way to charge exorbitant prices for what is widely described as the average food. But if Salt Bae taught us three things, this may actually be the most important thing. Service fees are not necessarily tips. Also, if you are paying a service charge, that fee can be used as part of the employee’s wage and does not have to be fully paid to the staff in addition to the regular wage.
This lesson was courtesy of the Federal Court of Appeals for the 11th Circuit, which upheld the decision of the Federal Judge of Miami, who ruled that an 18% “service charge” would be added to the invoice at the Nurs-Et Steakhouse in Miami on Friday. Provided by. Owned by Nusret Gokce, also known as Salt Bae – it wasn’t a hint as it wasn’t the customer’s sole discretion. (For the record, yes, the phrase “Salt Bae” appears once in the judgment.)
As the ruling states, “If the mandatory service charge is a tip, federal law generally prohibits restaurants from using the charge to pay employees a minimum and overtime charge, but charges. If they are not tips, the facility can apply them to employee wages. “
Twenty Nurs-Et employees sued the establishment, arguing that the service charge should not be used to cover regular wages, but the court finally ruled in favor of the restaurant. I gave it. The decision Reuters points out is in line with the decision of the Fourth Circuit in 2020, which decided that the automatic 20% chip for large parties was not officially a chip either.
Interestingly, the language used by Nurse-Et sounds the same as what customers believe to be “hints.” “For your convenience, an 18% service charge will be added to your final invoice and distributed throughout the team,” the menu quotes as reading in the judgment.
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However, the court cites in its ruling that “the essential element of a chip is its voluntary nature.” And the court later said, “FLSA [Fair Labor Standards Act] Neither “tip” nor “service charge” is defined. However, as stated in the regulations of the Ministry of Labor (“DOL”), the important features of “hints” are:[w]Whether or not a tip should be given, and the amount, is a matter that is determined only by the customer. “
The court also cites another DOL rule that provides an example of what is not a tip. “The service charge, such as 15% of the amount charged to the customer by the employer’s facility, is not a tip.” The court then continued, “We cannot distinguish this example from the Nusret service charge.” increase.
Notable is the amount of staff in the range of $ 23.68 to $ 51.58 per hour during the period covering the complaints of Nurse-Et employees (November 1, 2017-January 1, 2019). It turned out that I paid. As a result, everyone involved was well above the minimum wage.
Still, beyond the Nurs-Et bill, there is greater morality. Please be aware of any additional charges or charges that are not entirely at your discretion. Also, if you’re not sure how the service charges are being used, it’s a good idea to clarify on the server.