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HR Solutions

Judge Lefkow Refuses Miller’s Pub Server’s Claim hat American Express Tip Deduction Violates Wage and Hour Laws

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Credit Card Charge Can Be Shifted to Employee by Restaurant

04/24/06

There is no violation of §203(m), the minimum wage provision of the Fair Labor Standards Act, if a tipped employee’s tips are reduced by the discount charged by a credit card.  Because a large portion of restaurant meal bills are paid by credit card, this is no small amount.  Gillis v. Twenty-Three East Adams Street Corp. 2006 WL 573905 (N.D. Ill., March 6, 2006)