#Employment
Target:
The ownership of Fishbone's Rhythm Kitchen Cafe
Region:
United States of America
Website:
www.tip20.com

Amid a swirl of controversy, some restaurants, including Fishbone's, have scuttled plans to deduct portions of credit card processing fees from servers’ tips as a way to offset wage hikes and other increased operational costs that are squeezing profit margins. After a public outcry in 2008, Outback Steakhouse parent OSI Restaurant Partners, whose multibrand system includes 1,200 restaurants in 26 states, backed down from a plan to require servers to cover the proportion of charge card fees related to their gratuities.

Tampa, Fla.-based OSI, whose brands include Carrabba’s Italian Grill, Roy’s and Fleming’s Prime Steakhouse & Wine Bar, had implemented the policy in January in Illinois and Arkansas. But when employees and customers complained, OSI dropped the deductions and promised to refund credit card processing fees already withheld from servers.

Restaurants typically pay credit card companies fees that can range from 1.5 percent to 3 percent of a transaction. The fees apply to the total tab, including tip, though some operators pass on to servers the percentage of the fee not related to the meal portion of the ticket. For example, if a meal tab is $100 and the tip is $20, an employer whose 3-percent fee would be $3.60 may withhold 60 cents–3 percent of the tip–from the server on that one transaction.

One Outback Steakhouse server told local media in Arkansas that the policy would cost her an estimated $800 a year if she worked five shifts a week. Customers who were made aware of the new policy were said to have jotted pointed objections to it on their credit card slips and then left their tips in cash.

OSI’s chief legal officer, Joseph Kadow, said the company first considered making the deductions because of escalating costs. “However, upon reflection, we realized this decision is inconsistent with our principles and beliefs,” Kadow said. “We will take care of our people and our customers, and the institution of OSI will take care of itself.”

Fishbone's has made no disclosure of this policy and that is what seems most unfair. Had employees been made aware of this policy, there would be no controversy.

(Reproduced from: http://www.tip20.com/garnishing-of-tips-to-pay-charge-card-fees-sparks-controversy/766)

We, the undersigned, call upon the owners of Fishbone's Rhythm Kitchen Cafe to eliminate the company policy which allows for the garnishment of tips to cover credit card fees. This policy costs a full-time server an estimated $800 per year.

There has never been any disclosure of this policy and we believe that it is unfair for employees to be left to pick up the tab for credit card fees.

We, the undersigned, respectfully petition that the money that has been withheld from us be returned and that this policy be discontinued.

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The Stop the Garnishment of Tips to Pay Credit Card Fees petition to The ownership of Fishbone's Rhythm Kitchen Cafe was written by Heidi Thompson and is in the category Employment at GoPetition.