Tipping point: some customers have different standards than others (Image: passiveaggressivenotes.com)
Restaurants may have to cross out the “20 per cent gratuity will be added to parties of six or more” line on their menus if a bill proposing the elimination of automatic tips gets passed at Queen’s Park. As Spacing points out, Bill 81 or the “Elimination of Automatic Tips Act, 2010” was brought forth by Liberal MPP David Caplan. A transcript of parliamentary proceedings had Caplan introducing the bill on May 20 (there’s also a YouTube video that had been viewed exactly nine times when we clicked on it).
Eliminating automatic tips, 2010, or EAT, prevents restaurant owners from charging automatic service charges in restaurants across Ontario.
The legislation has one exception. It excludes private functions and banquets. In this case, restaurant owners and operators would still be able to charge automatic service charges when dealing with private gatherings and banquets.
The bill is still in its early stages but no doubt it’s going to spur debates among patrons and those working in the hospitality industry. Should tips only be given out for exemplary service or are they a mandatory amount given to servers with a crappy job—even when they’re serving six people or more?
This could change a lot for both sides. Having worked as a server in my late teens/early twenties, in busy restaurants, I am speaking from experience. Servers work for less than minimum wage and put up with a lot of garbage. Let’s say you get stuck with a large party in your section for an entire night (happens a lot) they tend to be very high maintenance. If the gratuity is not automatic, you could potentially walk out empty handed. Tips are the only way a server/bartender can make a living.
July 5, 2010 at 3:23 pm | by restaurantiTo be clear, the auto gratuity restaurants ‘mandate’ for parties of six or more, eight or more, etc, is in face not mandatory at all. You can always just say, You did a shitty job, Sorry, not paying you that much.
July 5, 2010 at 3:27 pm | by Oliver BraemOliver, that is totally fair to say about quality of service provided, but consider the fact that at the end of a night each waiter/bartender “tips out” to the kitchen/hostess/house, between 20-30% of total sales. So if they’re not getting a tip for the service they provided you (good service or bad, the food/wine/water didn’t order/make/deliver itself) then the waitress is actually paying out of her pocket to the chef/hostess/house for serving you and your party. I hope you understand that.
July 5, 2010 at 3:42 pm | by restaurantiwhy would davis caplan introduce such a moot bill
July 5, 2010 at 8:05 pm | by insiderbad experience?
always travels in packs of eight or more
or is he angry that his brother zane of caplanskys has achieved such success against all odds (great back tory would make great article for your mag (and more publicity for his resto) thanks zane)
Funny how it says “BOO You Fail” on the bill. The same could be said about the politicians at Queen’s Park. Maybe they should take a pay cut too..
July 6, 2010 at 11:01 am | by OddI am a manager in a restaurant and have been for many years. If they pass this bill they should also mandate that every person must put in 40 hours working in the hospitality business to understand what a tough job the servers have. You deal with so many types of people. Those who are crabby because they are hungry, those who complain just to get something for free and those who have nothing better to do in life that complain about such simple issues. Don’t get me wrong I meet a ton of amazing people too but people in general like to complain and not compliment others for a job well done.
July 6, 2010 at 9:57 pm | by TaraAt this rate lets just close every establishment since staff will not be able to make any money or pay their bills!
As a long-time server, I can understand clients’ frustration with automatic gratuities. May I say, in addition to the point stated by restauranti regarding tipping out, that my experience in the service industry has led me to believe that a large-group dynamic, regardless of alcohol consumption, results in very cavalier tipping practices which almost never benefit the server. I will also add, while this is an undeniably controversial statement (and also somewhat beside the point of this article, I realize), that groups of women are far more likely to exercise the aforementioned lack of caution than groups of men. How some female customers expect me to pay for tuition and blast through the glass ceiling is beyond me.
July 7, 2010 at 12:10 am | by J.Female.Hamiltonthis is going to become one of the endless debates as to how crappy it is to be a server in this city. But here’s my 2 cents… the kid’s working at H&M are trying to pay their tuition as well, but making minimum wage( i know minimum wage for servers is lower), it is not the customer’s responsibility to pay your tuition. Also the auto grat that goes on large tables is not mandatory. You can choose to give more or less. True large tables are more difficult, and time consuming, but often when the tip has been included the service is not up to snuff (in some past experiences). Also most restaurant tip outs average between 4-7% of sales, not 20-30% of sales. if the tip out were that high the server would lose $$ every shift ( with a decent tip being between 15-20%)
July 7, 2010 at 9:53 am | by melIn a perfect world servers would be proffesionals and would be paid a decent salary so “tips” would not be nessesary. This would mean that menu prices would be higher, but maybe they should be. Look at Europe….tips are not expected. Unfortunately we live in a society where meals are served by college co-eds who think that the world is owed to them.
July 7, 2010 at 10:32 am | by mattagascarIf the auto gratuity becomes illegal I will stop waitressing and so will many people in the service industry. Restaurants already have trouble staying in business and raising prices to pay a better wage would not be good for business. Serving is a hard job and physically demanding and many times people(teenagers and tourists mainly) don’t leave a tip, so I am paying out of pocket to serve them. I just hope they don’t rack up a large bill because I tip out 4% of my sales no matter what customers decide to leave as a tip. The reason an auto gratuity is customary is to protect the server from having to pay to serve you. If I have a party of 8 and they spend $300 and leave me $12 then I make 0 on that table. Our minimum wage is already low. If you had bad service then ask to speak to a manager and they will probably take it off the bill. I personally don’t serve a table differently when I know there bill will have an auto gratuity added but maybe others are less attentive. I am a great server and have done this job for ten years but I would stop if this bill is passed- seriously. This mpp should try and pass legislation that makes it illegal for restaurant owners to use tip money to pay for their business expenses or to cover the increase in the minimum wage because that is happening all over the city. I am literally paying the owner to work for his establishment so if you come and spend $100 and leave me 0, I am paying $4 to work. That issue seems more important than trying to attack the people in the service industry!!
July 8, 2010 at 12:17 am | by SCin a jobless economy, this is a priority?
July 8, 2010 at 12:57 am | by guyIt sounds to me that the “tip out” is the problem. I’ve never worked as a waiter so I had no idea this happened, and I can’t see how it’s even legal.
July 8, 2010 at 12:04 pm | by PatrickYou can’t expect to pass something like this without making an effort to protect the workers, which are the ones that would get screwed in this situation.
July 10, 2010 at 1:31 pm | by ISI’ve read all the comments before me. I have worked in retail and have also been a server for ten years. It is foolish to compare the two. So much more is required to be a server. How anyone can consider cutting down the wage of the only profession that continues to be payed less then minimum wage and is protected with no benefits and minimal workers rights, is extremely out of touch. Servers are not just teens and students but single mother, fathers and adult professionals, deserving of a real wage.
Still, as a student I have worked my ass of to pay for my further education with out asking for anyone for money (read government and tax dollars) To believe that most people actually tip 15-20% is crazy. There are no laws to protect servers from high “tip out” rates demanded by there employers but yet the government continues to legislate less then living wages.
Out-lawing automatic tips for larger groups continues to target those who make nothing and benefit the wealthy (those who can afford to go out). Finally, if you have never worked this job you have no right to comment! As multi-type professional I realise you have know idea what you are talking about, David Caplan!
July 12, 2010 at 4:53 am | by ajI agree tips should be given for good service. My daughter is a professional restaurant server and worker and much of her wage comes from tips. I can’t tell you how often large groups have stiffed her. As pointed out not only is there a low tip, but you can serve other tables because of the high demands of large groups. And there is the tip out.
Mr. Caplan and his government wasted $1 billion of her money on E-Health, they have brought in HST which hits restaurants and now eco-fees all while this industry was hit with a recession. Mr. Caplan, give up your MPP salary and take on a servers job for 3 months a see what it is like to live on these wages. Then see if you support your own bill. In other words walk is some oneelses shoes before hurting hard working people
July 12, 2010 at 9:41 am | by Dave McCleary