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ARTICLE · 16 AUGUST 2023

Dear Littler: How Do Restaurants Without Table Service Handle Tips?

Littler Mendelson
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We operate sandwich shops in a couple of states. Although we have tables, we don't have table service, and customers pick up food at the counter themselves...

United StatesEmployment and HR
Dan Boatright
Dan Boatright
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Dear Littler,

We operate sandwich shops in a couple of states. Although we have tables, we don't have table service, and customers pick up food at the counter themselves to either take out or seat themselves at our tables. We're moving to a new online payment platform, which includes an option for customers to include tips in varying amounts. We're new to dealing with tips, and not sure how this will impact our pay practices. Who do the tips go to? Those preparing the sandwiches in the back? All employees? Are there special minimum wages for those who work at the counter and interact with customers? Can you help?

—Confused Café Owner

Dear Confused,

Your confusion is understandable, as the answers to your questions depend on many variables, such as the employees' duties. There are also important differences between federal and state laws. Employers must comply with both federal and state wage laws (as well as any local laws), and generally must

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