N.Y. Comp. Codes R. & Regs. Tit. 12 § 146-2.19 - Administrative charge not purported to be a gratuity or tip
(a) A charge for the administration of a
banquet, special function, or package deal shall be clearly identified as such
and customers shall be notified that the charge is not a gratuity or
tip.
(b) The employer has the
burden of demonstrating, by clear and convincing evidence, that the
notification was sufficient to ensure that a reasonable customer would
understand that such charge was not purported to be a gratuity.
(c)
Adequate notification
shall include a statement in the contract or agreement with the customer, and
on any menu and bill listing prices, that the administrative charge is for
administration of the banquet, special function, or package deal, is not
purported to be a gratuity, and will not be distributed as gratuities to the
employees who provided service to the guests. The statements shall use ordinary
language readily understood and shall appear in a font size similar to
surrounding text, but no smaller than a 12-point font.
(d) A combination charge, part of which is
for the administration of a banquet, special function or package deal and part
of which is to be distributed as gratuities to the employees who provided
service to the guests, must be broken down into specific percentages or
portions, in writing to the customer, in accordance with the standards for
adequate notification in subdivision (c) of this section. The portion of the
combination charge which will not be distributed as gratuities to the employees
who provided service to the guests shall be covered by subdivisions (a), (b)
and (c) of this section.
Notes
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