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Monday
10Aug2009

Automatic Gratuities Are Still Illegal

In response to Goldbar's automatic gratuity charge, a helpful commenter calling themselves SLA Rep reminds us that this practice is entirely illegal unless an establishment clearly states the policy in writing.

If you realize you have been charged a Gratuity on ANY check that has not been stated clearly in writing that a charge will be given(Re: 8 persons or more at a table) on the menu- IT IS ILLEGAL.
Ask for an ITEMIZED receipt- Keep the receipt, make a copy of it with your Credit Card Statement showing the charge(or cash receipt) and leave a verbal complaint along with a return receipt USPS mailed copy to
A) The Better Business Bureau at (212)533-6200 AND the SLA at (212) 961-8378.
The establishment will get a fine, a written warning, and could induce a visit from the IRS to go over the accounting and Tip procedure.

With so many customers ordering drinks without consulting a menu, it seems that even if Goldbar displays its tipping policy, it is still operating in a grey area. 10 Birdy points to the first person who can mail us a copy of their cocktail menu.

« Bartenders Stealing From the Till | Main | The End of Oversharing »

Reader Comments (26)

Why would dbth post this??? Isnt this site supposed to write and gossip about whats going on in Nightlife?

If you have nothing else to blog about, dont write sh*t like this.

August 10, 2009 at 10:33AM | Unregistered Commenteranon

Clearly the first comment is by a bartender or an establishment that is in violation of this practical and completely logical rule

August 10, 2009 at 10:49AM | Unregistered Commenterripped off

@ Anon - So you are happy that bars are stealing money from people? The law is you have to publish an automatic tip policy so everyone knows about it, it sounds like they are just forcing people to pay an extra 20% on top of a $20 drink

August 10, 2009 at 10:51AM | Unregistered CommenterI Want My Tips Back

@anon - are you kidding? this is extremely useful information.

clearly you are an idiot.

thanks bye

August 10, 2009 at 10:56AM | Unregistered Commenterword up

BOOM

You've been "kaded"

August 10, 2009 at 11:04AM | Unregistered Commenteragreee

as if $17 for a drink isn't bad enough they auto include tip lol

August 10, 2009 at 11:14AM | Unregistered Commenterjames goldman

have any of you ever been to goldbar ?
1- i dont work there or have any affiliation with the owners or employees

2- i would bet that 20% grat is for tabs over a certain amount. Its definitely posted some where behind the bar or on one their menus.

August 10, 2009 at 11:15AM | Unregistered Commenteranon

Sorry Anon- ONLY on the bottle service menu will you find the 20% gratuity- and yes even that is a very very fine line as tax IS included into the drink when purchased, being every Gratuity should be taxed.
And of course you can REFUSE to pay the Gratuity.
There is NO legal basis for the added gratuity- and for everyone about to scream "It is our policy" remember "kick-backs are NOT legal, and thus the Gratuity is a "suggested" add on.
Would you be forced to tip a cabdriver 20% if you felt the service was not to your liking. Or are you forced to tip at all?
The reason this IS relevant- is a situation like Goldbar IE: When double 7 closed to due to the "demo clause" and the staff for some reason was lacking the credit card tips from a certain pay cycle. The tips you leave do not always make it to the people you leave it to. So that 20% is pure greed.

August 10, 2009 at 12:02PM | Unregistered CommenterWell anon

Why should I pay 20%? I should freaking choose whether I want to give 10%, 15%, or 20%. Hell if I want I can give 100%. But if automatic 20%... that's grimey

August 10, 2009 at 01:08PM | Unregistered CommenterWTF

goldbar has always charged 20% autograt (industry parlance) at the bar. it is not mentioned on any of their menus and since you are not necessarily given a menu at the bar, it is completely illegal, since it is not clearly posted (ie behind the bar). i have been the victim of this and i know the law, but who wants to complain at a place like goldbar if you hope to ever go back. it is indeed shady.

August 10, 2009 at 02:45PM | Unregistered Commenterstua

so the douch on the door wants to take monies from people coming in...and the policy is too do a miami and add tip ...so why dont they move gold bar to miami ...there policies are the same ....was cain the same ....

August 11, 2009 at 12:09AM | Unregistered Commenterano

come on...this is nothing new. same sht at Avenue. can't sell bottles like they used to...gotta make money somehow

August 11, 2009 at 12:12AM | Unregistered CommenterAvenue

I recommend everybody at one point in their life wait tables to understand what tipping is all about. Your $1 a drink doesn't quite equate on a $10 drink. You should be able to decide if you want to tip 10% or 20%, but we know your decision never changes. Staff is there to service you, but not slave for you. Ask all those out of work suits from wall st. if they wished they tipped better, they probably wouldn't be out of work. The first place they all looked was bartending and server jobs. Payback's a bitch.

August 11, 2009 at 11:25AM | Unregistered Commentermisstheolddays

When the nightlife industry goes to shit and is taken over by restrictive laws, we will be able to look back at DBTH as the whistleblower that brought it to light. DBTH, are you happy, you have made a name for yourself?

August 11, 2009 at 11:27AM | Unregistered Commentermisstheolddays

Cry me a river, of booze.
Expecting a 20% tip for popping open and handing over a few beers with a side of attitude is quite ambitious.

August 11, 2009 at 11:34AM | Unregistered Commenterso sorry

ummmm misstheolddays- how old are you? 22?
the nightlife industry has long gone down the crapper when "promoters" are getting 2 points and passing themselves off as "owners". No place today can even come close to the monday night fat frankie's party at china club circa 1988- or Corrola's Red Zone, or The scrap bar for it's crowd- maybe even dancertia, or the underground or the Saint- Throw in cafe iguana, Milk bar, The bank, The cat club, The vault(for it's crowd)
These children today are greedy spoiled brats- Let Mr Rabbiiinnn cry foul every time a new place wants to open saying it's not fair- Or scott and ritchie fight over danny a with mark and eugene- They are all star-fuckers
Every one of them would have waited a long time to get in anywhere back in the day- If they even got in at say 3:30am.

August 12, 2009 at 05:00AM | Unregistered CommenteryourNotSobright

yournotsobright-
I couldn't agree with you more...except you forgot AREA, Heartbreak, the origInal LIMELIGHT! and a few more that i cant even remember!

August 12, 2009 at 10:42AM | Unregistered CommenterMason Reese

Ahhhhh Heartbreak on varick st- Of course nikki camps rock n roll church was classic- you can throw in True Blue on the upper east before it was chezzed(1990) or for the real past what about Xenon on 43rd street when it was "taxi driver" scary to walk around- or the ritz watching Guns n Roses in 1989 who 1 year prior played a acoustic set at the gallery at CB's... Mudd club on white street- or the sad long gone Lone star cafe that finally ended up duvet(ugh)

August 12, 2009 at 10:58AM | Unregistered CommenteryourNotSobright

If you idiots knew how to tip when you are trying to act like a big shot at the bar, it wouldnt have to be added- dumb girls don't tip, and drunk assholes conveniently round out an $86 tab to $90 with a nice 4 tip. Would you do this at a restaurant? You demand fast service, order all kinds of stupid fucking shots and drinks in a large mixed order- then leave $1 tip. FUCK ALL OF YOU. Next time you hang over the bar and YELL your order "a long island, 2 lemon drops, one patron....wait! two patrons...no wait! 3 patrons, a soco lime, vodka soda splash of cran, pinapple, etc" I'll just BITCHSLAP you, and you can keep the 20%. Also in busy bars and clubs, when not directly observed, credit card tips are ALWAYS 5% - 10%, THE REASON THINGS LIKE AUTO-GRAT, CREDIT CARD MINIMUMS, ETC even exist is because YOU ASSHOLES DON'T KNOW HOW TO ORDER OR ACT AT A BAR.

August 12, 2009 at 11:28PM | Unregistered CommenterMEN MEN MEN

Ummmm MenMenMen-
You are not really painting your fellow "industry" people with a pretty paint brush.
If you do not like that $4 tip- Quit, Leave, Go back home to your roomates. I hope you realize that at least 100 people will try to fill the spot when your bad attitude is gone.
Just because you went to "bartending school" does not give you the authority to be a putz.
You seem to be able to do that on your own with an effortless ease, only years of being a scumbag could bring.

August 13, 2009 at 12:17PM | Unregistered CommenterHuh

Dear Huh, I never went to bartending school, but how would you feel if at your entry-level cubicle job, aside from your normal work (which in my case is regular, courteous people who know how to act in public) you had an army of assholes constantly fucking with your work as to top it off, there were designated websites claiming YOU didn't get your bosses coffee order right, you can't work your copy machine correctly- I'm just saying that these things your bitching about wouldn't be necessary if it wasn't for stupid fucking people. (also traffic laws, crowd control measures, and most other "rules" exist mainly because most people are too stupid to act properly on their own.) also, FUCK YOU.

August 13, 2009 at 12:38PM | Unregistered CommenterMEN MEN MEN

MenMenBoy - 3 pm... Playground.

August 13, 2009 at 12:59PM | Unregistered CommenterHuh

See you there, HUH- I'll be behind the swingset with a clown suit on and a raging hard on

August 13, 2009 at 01:40PM | Unregistered CommenterBoys 2 Men

Your mother must be very proud.....
I will ask her when I visit her work and knock the dick out of her mouth.

August 13, 2009 at 02:03PM | Unregistered CommenterHuh

why would you knock the dick out of her mouth? she's just trying to earn

August 13, 2009 at 11:36PM | Unregistered CommenterBoys 2 Men

Life lessons Boys.... life lessons.....

August 14, 2009 at 10:24AM | Unregistered CommenterHuh

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