Neptune City, NJ asked in Employment Law for New Jersey

Q: I work in NJ as a server/bartender. Is it legal to make the servers pay the credit card fees of the restaurant?

I recently was told that it is illegal to make guests who pay in cash, pay credit card fees. I had nothing to with the terms of agreement between the bank and owners. Why would I be responsible for those fees?

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2 Lawyer Answers
Paula M. Dillon
Paula M. Dillon
  • Hackensack, NJ
  • Licensed in New Jersey

A: the fee could be passed on to the consumer

Peter J. Weinman
Peter J. Weinman pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Licensed in New Jersey

A: I do not necessarily disagree with attorney Dillon, but I think you were asking whether your employer can use your tip money to pay the credit card fees... and in my opinion, the answer is NO:

" employer is prohibited from using an employee’s tips, whether or not they have taken a tip credit, for any reason other than as wages or in furtherance of a valid tip pool. This includes a prohibition against the employer using an employee’s tips to pay any portion, however small, of the fee charged to the employer by a credit card company or other financial institution for the use of credit or debit cards in their businesses, including the processing of such credit or debit card transactions."


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