As defined by Labor Code section 350, a “tip” or “gratuity” includes any money that has been paid, given to, or left for an employee by a patron of a business over and above the actual amount due to the business for services rendered. Tips or gratuities are distinguishable from “service charges,” which are amounts
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New Legislation Prevents Food Delivery Platforms From Retaining Amounts Designated as Tips or Gratuity
By Ellen E. Cohen & John Andrew Schaffer on
Posted in Wage and Hour
California’s Governor passed Assembly Bill 286 (AB 286) which amends the Fair Food Delivery Act of 2020. AB 286 makes it unlawful for a food delivery platform to charge a customer any purchase price for food or beverage that exceeds the price posted by the food facility on the food delivery platform’s internet website at…