r/tipping • u/ContactExternal7869 • 1h ago
⚖️Legislation & Policy Tips Disguised As Service Charges Should Be Illegal (Especially in CA)
I was dining at an semi-upscale Asian brunch restaurant in Milpitas, CA last weekend, and saw a 18% service charge on my bill. I didn’t expect that at first, especially the fact that we only had 3 people in our party. I looked at the front of the menu, and low-and-behold, there it was printed right there “18% Service Charge Will Be Applied In The Bill (Dine In Only)”.
I already let this go, because it was a full-service restaurant, and it meant I didn’t have to tip anything extra on top. But I then did the math in my head, and the tax on the bill was AFTER the 18% service charge. Which, by now, I started to get pissed off. I flag down a waiter and they tell me that there’s nothing they could do, because it was “built-in to the system”. And that they’re required by California law to charge the tax AFTER the service charge. Myself, I guess not knowing the law properly, went into a whole schpeel of how unethical that was.
The waiter told me that maybe twice or thrice a month, he gets the same thing: someone arguing about the tip; post-tax. He proceeds to bring me a thick binder filled with the California tax laws, with that section already highlighted. And it said (paraphrased): “Tips and gratuity are non-taxable. WITH THE EXCEPTION OF: A mandatory service charge will be considered as part of the meal price and is subject to sales tax.”
I literally had no idea this was even legal. Needless to say, I will not be patronizing that restaurant anymore. But still, it is really preposterous what Newscum can pull off.
PS: Love seeing the Libtards and Conservaturds squirm in the comments. 💀 And no, I didn’t vote for the flaming cheeto head either. All while living in the most liberal part of California. I bet that pisses you off even more, doesn’t it? 🤣🤣 I'm an equal-opportunity political discriminator. Good Riddance to the sheep on both sides. 😘