I work in a restaurant in Chicago IL and we are forced to tip out 45% of our total tips to support staff. We also in New York doing the same thing. Is there a limit as to how much the restaurant can make us tip out in either location? Also is it legal for the restaurant to charge us the credit card processing fee in either location?Is there a legal maximum tipout percentage that restaurants can enforce in IL or NY?
The FLSA does not govern tip out percentages. The FLSA tried to say 25% or 2% of gross but the courts overruled them and said no maximum could be set by the DOL. They also aren't charging you, the credit card company is charging you the processing fee, so it's legal. See the handbook from the DOL. Chapter 30.
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