Money Matters

When to Tip Controversy Reaches New Tipping Point

The restaurant industry is currently embroiled in a legal dispute that is fanning the flames of an ongoing debate on tipping. At the heart of the issue is a recent lawsuit filed against renowned Californiabased pizzeria, Jon and Vinny's, whose celebrity clientele includes the likes of John Legend, Jay-Z, Beyonce and Kim Kardashian.

Former servers at Jon & Vinny's recently sued the restaurant over a "service charge" added to customers' bills that was mistaken for a gratuity diners believed to be going to servers and leading to a huge loss in tips.

The restaurant's waiters allege that the 18% service fee that is automatically added to all their checks should be paid out to them. The owners of the restaurant have stated that instead the

Customers often conflate service charges and tipping, perceiving them as one and the same. However, there is a significant difference. Service charges are mandatory fees set by the establishment, often added to the bill in lieu of tips to help facilitate a higher living base wage for all of the restaurants employees, while tipping is an optional act, dependent on the customer's discretion and satisfaction with the service provided.

None the less, what amounted to wage theft for the servers has highlighted the controversial issue of tipping as the trend of restaurants charging both service charges and gratuity fees is on the rise, causing a stir within the industry and among consumers.

“It doesn't seem fair to the diners,” said one observer. “So they pay 18% service fee and then the servers are asking for an additional 18 or 20 (or whatever) on top of that? That's really expensive. If you raise prices to what it honestly costs to produce food and pay workers and pay the overhead, then restaurant dining will ad-