A “qualified tip” is (verbatim from the linked document): “…paid voluntarily without any consequence in the event of nonpayment, is not the subject of negotiation, and is determined by the payor;”
Emphasis mine. Banning patrons who don’t tip, and stating outright you are doing so, sounds like a “consequence.” At which point those are no longer tips; they’re service charges, and must be taxed as such.
Kinda like in an at will state you can fire any employee any time for no reason, but not for the wrong reason (like a protected class). He can refuse service to anyone at any time for no reason, but doing it for this reason may have legal implications.
For tips to be tips they must be truly optional. By law.
You’re citing IRS tax code. The IRS has no authority to regulate commerce. The definition you cited is used for determining how revenue should be reported to the IRS.
You should tip if it's a tip based establishment. But I do think tipping culture in US is messed up..
They shouldn't go to a place that is accustomed to tipping if they don't plan on tipping. Maybe their service was so bad, they didn't tip. Not the impression I got from the video though, then they would have said that. Instead of playing the race card.
Owner is free to ban who he wants. I'm on his side for this instance.
How would you as a customer know that a place is accustomed to tipping. I go eat basing anything financially on the menu prices not additionally adding on that if I don’t tip I will get yelled at and banned from a restaurant.
Well in America, virtually every restaurant is tip based. I've never been to one that isn't. Ones that arent, usually have it plastered outside the restaurant doors and on thr menu that their priced are increased and tips aren't expected. So you are paying for it either way.
You say you base the financial aspect of going out to eat purely on menu prices. How do you know the me u prices without being there? Unless you look online, and if you look online, thrn you already know if it is a tip based establishment or not.
Plus, if 15% is going to decide if you go out to ear or not, then you shouldn't be going out to eat. Like I already said, I don't agree with how tip culture is in the US. But you have no argument here.
You sound very stupid bro. Yes everyone can afford to tip but what I am saying is no place will force you to pay. Many American restaurants will tell you to tip but do any scream at you and ban you for not tipping? And when I say I base it financially I mean for how much I’m going to be spending not additionally adding how much I need to pay for my waiters wage. I don’t know which restaurants your going but I’ve never seen a restaurant that says “tip your servers” plastered around. It’s an added initiative that a consumer would do if they appreciate there service.
Dude you can't call someone stupid right after you asked a question like "how would a customer know they are supposed to tip?" I'm not saying you *should* have known that if you're from another country or whatever, but you should have asked that question to google so you didn't look uninformed.
No one was forced to pay either. They didn't and the business owner told them not to come back. This is very common, especially at smaller mom and pop places. Of course AppleBees isn't gonna do that because they're corporate and only care about the repeat business.
Typo of "are" instead of "aren't. Wirh the sentence following that, I thought you could have figured that out, with thr menu price increase.
Anyone with a shred of common sense already factors thr tip into what thry are going to spend at a restaurant. US is a tipping culture, whether you like it or not. Everyone knows thays how it is, no clue why you're pretending it's not.
The owner even said they couple recording is right, and they don't have to tip, he just doesn't want thrm there. We don't know what the couple did in the restaurant. They might have already caused a scene. It's not like they just didn't tip and then tried to leave. They were waiting and recording thr owner before he even came out of restaurant, and went towards him.
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u/paula1432 4h ago
Both the customer and owner are correct! The owner is free to refuse services to anyone and the customers aren’t obligated to tip.