Legal Question in Business Law in Texas

Gratuity

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


Asked on 10/26/02, 3:24 am

1 Answer from Attorneys

Peter Bradie Bradie, Bradie & Bradie

Re: Gratuity

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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Answered on 10/26/02, 2:51 pm


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