N.Y. Comp. Codes R. & Regs. Tit. 12 § 146-2.20 - Tips charged on credit cards
When tips are charged on credit cards, an employer is not
required to pay the
Example
The bill totals $100 exactly. The customer leaves, on
their credit card, the $100 payment of the bill, as well as a $20 tip. Both the
tip and the bill must be processed through a credit card company which charges
a 5 percent fee on all transactions. The total charge levied by the credit card
company on the $120 charge is $6. Of that $6, $5 is for the bill (5 percent of
$100) and $1 is for the tip (5 percent of $20). The employer must provide the
Notes
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