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City Council Votes To Keep Waiters’ Tips Out Of Restaurant Owners’ Hands

PHILADELPHIA (CBS) – Score one for the waiters, as City Council approved a bill that stops restaurant owners in Philadelphia from deducting credit card fees from the waiters’ tips.

By a 14-to-2 vote, City Council approved and sent to the mayor a bill that prohibits what is thought to be a growing practice: restaurant owners deducting some credit cards fees from the tips of waiters.

One of those voting no was Councilman Bill Green.

“This is the same as a targeted tax increase.”

But Councilman Bill Greenlee rejected his colleague’s claim, and said all this is about is fairness.

“When I give that tip, I expect it to go to the server, I think it’s very simple.  It’s about giving people what they deserve.”

The mayor is expected to sign the bill.

The Pennsylvania Restaurant Association has blamed the practice of deductions from tips on the high fees of credit cards companies, and the group predicts this bill could put some eateries out of business.

Reported by Mike Dunn, KYW Newsradio 1060

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  • Francis Graff

    A two sided flip of the coin? However, JacobsLadder is right. Pay it all in cash, and your conscience as well as your stomach is satiated. See, we don’t need a city councilperson’s advice after all. The owner reports his cash to the I.R.S as well as the server. Then let the city, state and federal government do their job. Evertbody is happy. And hey there Billy and Bill, do I detect a little head butting there. Going to be a fun four years leading up to the next Mayor’s race. See you both then??

  • Marc Train

    Maybe now some restaurant owners will see that they, too, have common cause against the big banks that are plundering our country’s wealth.

  • CatD

    When I learned of this practice, my husband and I started to use cash just for the tip. It helps the restaurants, too.

    • JacobsLadder

      Same here. Once I learned of this, I now pay the bill and the tip in cash. I no longer use my credit card to eat out at restaurants.

  • Mother Bachmann

    If a restaurant can only stay in business by stealing the credit xcard fees from the servers tips, they are already in big trouble and don’t deserve to be in business. When I tip, I expect the tip to go to the server or I wouldn’t have done it in the first place.

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