Gratuity


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PostPosted: Sun Jun 14, 2015 4:18 pm
Can a pizza delivery service charge gratuity by law? Separately from the delivery charge? To make sure the drivers aren't stiffed

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PostPosted: Mon Jun 15, 2015 1:30 am
legacy1 wrote:Can a pizza delivery service charge gratuity by law?


The answer to your question is Yes, but it more complicated than just a simple answer.

My explanation might confuse you, it's somewhat difficult to answer this question if you do not already have an understanding an understanding of the following:

READ THIS FIRST! Fact Sheet #15: Tipped Employees -FLSA
Tips/gratuities:
Tip Credit:
Automatic service fees/charges:
Fact Sheet #15: Tipped Employees wrote:Service Charges: A compulsory charge for service, for example, 15 percent of the bill, is not a tip. Such charges are part of the employer's gross receipts. Sums distributed to employees from service charges cannot be counted as tips received, but may be used to satisfy the employer's minimum wage and overtime obligations under the FLSA. If an employee receives tips in addition to the compulsory service charge, those tips may be considered in determining whether the employee is a tipped employee and in the application of the tip credit.




legacy1 wrote:Separately from the delivery charge?

Yes.

legacy1 wrote: To make sure the drivers aren't stiffed

Yes.


BUT...!!! that pizza delivery service could also keep 100% of the automatic service charge meant to go to the delivery driver as a gratuity, since it is legally that entity's property. AND... that pizza delivery service could also keep 100% of that automatic service charge known as the delivery fee, whcih is meant to reimburse that delivery driver for the business expense of operating their vehicle, also known as mileage reimbursement.

I, and I believe Gregster also, have a very low opinion of any type of "delivery service", since most of them can, and most likely do, violate the law many different ways. Least of which is because the person working for those delivery services are classified, usually incorrectly, as an Independent Contractor.

While I've answered your question to the best of my ability, I wonder if there more you need to understand so you can ask a better question or provide additional information so I, we, can get a better understanding on why you are asking these two questions.

Would you care to tell me, us, more about your specific situation?
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PostPosted: Mon Jun 15, 2015 8:27 pm
I asked for the purpose to educate myself, if we did add a service charge separately from the delivery charge it would be for making sure the drivers got :idea: tipped properly. The company wouldn't keep any of it. We will be delivering to hotels that get a lot of out of country clients who are use to not tipping much in their own country or might not see the purpose of tipping our drivers because of their own standards from their country's or just don't care and want to take advantage of not having to give away any extra money. I ask because we want to make sure our employees are making a living not from just minimum wage. Because anyone that gets into a tipped position is looking for that extra cash based on their customer service skills. For the neighborhoods we deliver to, I wouldn't want to say there should be a service charge other then the delivery fee just like any other pizza delivery company but when your working with hotels that cater to foreigners, it's hard to say if they will appreciate a delivery driver enough to give a decent tip or a tip at all. I simply want to look out for the employees. But at the same time our company will not do anything illegal or morally wrong because it's a about the customer service

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PostPosted: Tue Jun 16, 2015 6:01 pm
legacy1 wrote:I asked for the purpose to educate myself, if we did add a service charge separately from the delivery charge it would be for making sure the drivers got :idea: tipped properly. The company wouldn't keep any of it. We will be delivering to hotels that get a lot of out of country clients who are use to not tipping much in their own country or might not see the purpose of tipping our drivers because of their own standards from their country's or just don't care and want to take advantage of not having to give away any extra money. I ask because we want to make sure our employees are making a living not from just minimum wage. Because anyone that gets into a tipped position is looking for that extra cash based on their customer service skills. For the neighborhoods we deliver to, I wouldn't want to say there should be a service charge other then the delivery fee just like any other pizza delivery company but when your working with hotels that cater to foreigners, it's hard to say if they will appreciate a delivery driver enough to give a decent tip or a tip at all. I simply want to look out for the employees. But at the same time our company will not do anything illegal or morally wrong because it's a about the customer service


If you are coming to this forum to seek legal advice on whether your business venture is able to perform certain actions, I caution you... We are not lawyers. You need to speak to an attorney that is knowledgeable on these issues, not a bunch of laymen. That you have come here seeking this advice leads me to wonder if you are going to accomplish what you set out. I don't say this to be mean, just observing that you need to seek actual legal advice.

Edit: While I may applaud the efforts you are going to, or may go to, to effect a benefit for your employees, you, as an employer coming here, a forum for the advocacy for delivery drivers, seeking to what amounts to legal advice from other delivery drivers for the benefit of your business venture seems, to me, quite reprehensible. You are seeking advice, legal advice, from us, without compensation.

While the information we have already compiled is free to anyone willing to wade through it, I for one find your actions guilty of attempting to take advantage of the same class you purportedly are attempting to benefit.

You can wade through the information that is already provided, but I for one will not provide you with any additional information to benefit your business, without compensation.
Don't expect others to fight your Battles

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PostPosted: Tue Jun 16, 2015 10:31 pm
I meet with my boss and lawyers next week, I understand what your saying and I appreciate your answers. I also understand I can not take anything online seriously when it comes to law unless I get it from a government site itself. I just want to somewhat educate myself through multiple channels so I understand what I asked. I do not make the decisions, I just sit in on them and I want to keep up with other people. I saw this site as a multitude of people who have been in the business for a while when I'm just getting into it, I am trying to prepare as much as possible. When I say I'm just educating myself, that's exactly what I mean. I like to hear people's opinion which is what this site offers. I wished to get more responses but I'm happy with your reply. Thank you for your advice

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PostPosted: Wed Jun 17, 2015 3:04 am
legacy1 wrote:I meet with my boss and lawyers next week, I understand what your saying and I appreciate your answers. I also understand I can not take anything online seriously when it comes to law unless I get it from a government site itself. I just want to somewhat educate myself through multiple channels so I understand what I asked. I do not make the decisions, I just sit in on them and I want to keep up with other people. I saw this site as a multitude of people who have been in the business for a while when I'm just getting into it, I am trying to prepare as much as possible. When I say I'm just educating myself, that's exactly what I mean. I like to hear people's opinion which is what this site offers. I wished to get more responses but I'm happy with your reply. Thank you for your advice


You are welcome to the advice, I have provided.. I hope you succeed in your endeavor and that you will, in fact, treat your delivery drivers in the way that you have described.
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PostPosted: Wed Jun 17, 2015 4:48 pm
The delivery charge is a service charge and by federal law all service charges belong to the employer. If the employer chooses to pay any money to the delivery driver they are welcome to. It's their money to do with what they want.

I suggest that if you are going to have a delivery charge and a separate charge meant to go to the driver and place of tips, I suggest that you call that second charge an automatic gratuity so people will understand that it is meant to go to the driver. Although, legally, even automatic gratuities also automatically are the property of the employer. But as usual it is your money and if you choose to give it to the driver that is perfectly legal.

Thank you for thinking about the wages and income of your drivers. Very few people give that any serious thought. I will also hope that you look at the mileage you are paying your drivers and make sure that actually compensate them for the total cost of using their vehicles to deliver your product. If you don't know how much you should be paying them for mileage a good estimate is to use the IRS or the triple AAA mileage rates. those will keep you out of trouble.
"If you ain't on the road, you ain't makin' money!" - gregster

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