Why is auto gratuity illegal?

Okay, so you’re wondering why auto-gratuity is sometimes a no-go, huh? Well, let me tell you, it’s a bit of a sticky situation!

See, auto-gratuity isn’t actually illegal everywhere, but here’s the thing: it’s not really considered a “tip” in the true sense of the word. Legally speaking, it’s more like a service charge. I mean, think about it – a real tip is something you decide to give, right? It’s that little extra you offer because the service was amazing, or the waiter was super friendly, or maybe just because you’re feeling generous that day.

But a mandatory auto-gratuity? That’s…different. Federal law gets into the weeds here, basically saying that a “tip” has to be voluntary. So, if it’s mandatory, if you have to pay it regardless of whether you loved the service or not, then it can’t legally be called a gratuity. It’s all semantics, I know, but it matters!

I remember one time, I was out with some friends at this fancy restaurant, and they slapped an 18% auto-gratuity on our bill. We were a pretty big group, sure, but the service was honestly…meh. It felt a little unfair, you know? We kinda wanted to adjust it down, but it was already added in! Talk about awkward.

So, yeah, it’s not that auto-gratuity is strictly “illegal” across the board, it’s more about how it’s classified and what the rules are around voluntary payments. It’s a service charge, plain and simple, not a tip. Does that make sense? It gets confusing, I know!

#Autogratuity #Law #Tipping