Gratuity built into our contract, but not given to the servers?

When I served at a banquet hall I very rarely received tips, only ones from the guests themselves and nothing from the venue caterers. But I was paid well.

If they don't receive gratuity, then they have to make at least minimum wage. It would be illegal to pay them the standard $2-3/hr server pay if they did not make up the difference in gratuities.

Yes- This is one of the reasons I am glad we chose not to go with a venue that included catering. I would much rather tip the servers myself so I know exactly where the money is going

We looked at some resorts and other venues that had 22% gratuity plus 7% tax.

No. my venue operated the same way. they even explained it fully ot us saying, we'd rather charge you upfront for the gratuity and then use that to pay our servers a sufficient, competing wage rather than deal with us deciding what to pay for gratuity and such. And so, the per person price included gratuity and they actually wouldnt LET us tip in addition to that.

They didnt tell us how much they pay their servers, but it sounded like it was enough for them to be getting a good deal.

It depends on the venue, mine's a country club, they pay their servers regular rates considering it's not like a restaurant where they'll get individual tip from everyone they serve. They wages are higher than regular waiters

The only thing I see wrong with what you've been told is the fact that the gratuity is included in the price, that is definitely weird, I've never heard it before, our venue told us that there's a 20% gratuity that we need to add to the total before. I would question that again.

But then that's not a gratuity! How they pay their employees is not your problem, and you should not have to pay a gratuity on top of a gratuity. And, you should DEFINITELY not be paying tax on a gratuity. Up until the tax part, it may be (sort of) a matter of semantics - would you rather get $3/hr and tips or $8/hr as an employee, well, I'd rather have the sure deal too. But you absolutely should not be paying tax on top of that. I'd talk to them about it.

At my daughter's venue, both the gratuity and the tax are included in the pricey per plate charge. We were told their servers were professionals and paid accordingly. We were also told the bartenders would not be putting out tip jars(thankfully so). Most of the higher priced venues I researched did have this same policy. ??? I don't know why.

At my first wedding, the tax and 17% gratuity were added on to the bottom line.

I read the contract very carefully before signing it, so I think I just need to go back and check the wording of the contract. I THOUGHT it said in there that gratuity was included in the price, in which case, I think the servers should get that AND we shouldn't pay tax on it, but it's also possible gratuity is just not mentioned and it states that the only additional charge above the per person price is tax. If that's the case, we must have asked about gratuity and they must have said it was included in the contract. If so, I just wish they'd said "we don't charge gratuity" and explained the situation then. More than anything, I just feel misled. At least they're not pulling a random gratuity charge out of thin air, though, right?

@ Calore B... interesting. The other places we'd looked at didn't do it that way, but the one we picked is also the most expensive AND at the top of our budget. That's part of why I feel badly, I guess... 'cause we really can't afford to add on a tip for the servers and if they're not getting tipped, I wish we could. (I used to work in customer service, never in food, but the whole industry is a pain! )

I personally think it's scummy because it makes YOU think that you've tipped the employees. It's underhanded. And no, you shouldn't pay tax on a gratuity.

When I worked as a server at banquets, they took the total gratuity and divided it up among the servers based on how many hours of the banquet they worked. It's pretty much the same thing.

Unfortunately, that means the waiters who work the more expensive parties make more than the ones who work the chicken parties....it's not fair and it's decpetive. Period.

Good call Celia, I've never thought of that.

Celia, if it's a flat increase in their hourly wage, how does it mean that waiters make more for more expensive parties? I don't get that. It actually means they make the same regardless of how much the food cost or how big the party is.

If you're paying 20% on a 100.00 party, it's more money to split up than 20

% on a 75.00 party.

I just hate the idea that the gratuity is dictated to you, and it's obviously a tactic that's not transparent.

I would just like to share that a gratuity is something at the discretion of the customer/client. A service charge is something totally different. It's not scummy or underhanded. It's a charge that the venue includes on a bill to let the client know, his guests will receive full service from the staff because staff isn't working based on trying to make tips, which is what a restaurant waiter/waitress does. The catering staff is expected to work hard and tend to all needs from the guests no matter what the guests decide to leave for the server. And yes, some servers even go above and beyond this to try to make more in tips, which I allow the staff to earn as well as allow the client to give. I always tell my staff to never stand around, even when there seems to be nothing to do. Open doors, fold napkins as guests are on dance floors, keep water filled, bread replenished, smile, never say "I don't know" and let guests know an answer will be provided, etc.

Minimum wage in our area now is $11.10 and in a restaurant, that number is what the waiter/waitress is making per hour including his or her tips. This is why the restaurant industry pays way below minimum wage hourly pay...because the expected tips are to make up the difference. How many tables can a waiter/waitress serve in one hour? In my establishment, the staff is paid between $12 and $18 depending on how strong he/she is on the floor. In the catering industry, many high school and college students have a shot at job. Plus, it's a great place for young workers to get their feet wet in the working world while at the same time, making decent wages.

It's a win/win. Nothing scummy here!

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