February 9, 2009

NYC prohibits built-in restaurant tips over 15 percent

As the economy sours, more New York restaurants are tacking on unfair service charges including built-in tips as high as 20 percent, the Post reported this weekend.

The Department of Consumer Affairs today confirmed to NewYorkology that restaurants are allowed to tack on a mandatory service fee or tip only if they meet several city rules:

The fee must be listed on the menu in 10-point type or larger.
The fee can only apply to groups of 8 or more.
The fee cannot exceed 15 percent.

Charges for two persons splitting one meal, or a per-person minimum charge are allowed as long as the fee is conspicuously disclosed to the consumer before the food is ordered.

“New Yorkers should never be surprised about a charge when they get their restaurant bill,” Consumer Affairs Commissioner Jonathan Mintz said in a statement sent to NewYorkology. “Charging mandatory gratuities on parties with less than eight people is illegal. Consumers should call 311 to report these illegal activities.”

If you realize your bill is wrong you can complain to the restaurant to remove the charge, call 311 to anonymously ask for an inspection of the restaurant, or if you have the time and your receipt, you can file a complaint with the Department of Consumer Affairs which will try to get you a refund of the unfair service charge.

February 9, 2009 4:30 PM in Drinkology, Foodology

®Copyright 2004 - 2010, All Rights Reserved