I am a waiter in a resturant, and was wondering if it is legal to add gratuity to a bill's subtotal or total?
ex. sub total = 20.00
tax = 1.65
total = 21.65
Legal to grat:
20.00 and then add tax -or-
21.65 and not and tax
tip (15%) = 3.00 or 3.25
1 Answer from Attorneys
Adding in a gratuity is proper with prior notice;e.g. "a 15% gratuity will be added to a bill for parties greater than five in number." Adding it without prior notice is theft.
If the customer adds a gratuity, only the subtotal is taxed.
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