Update on the 'mandatory gratuity' case

The man at the center of the "mandatory gratuity" fracas (see here) will apparently not be charged. According to The Post-Star, the Warren County (NY) district attorney said her office's legal research found a federal court case in Indiana in which a judge ruled that a patron can not be forced to leave a gratuity. Had the addition to the bill been called a surcharge or service charge, though, it would have been a legal obligation and [the defendant] could be prosecuted for refusing to pay it.

"The court in that case said a service charge could be forced on a customer but a tip can not," the district attorney said. "We'll advise him [the defendent] by letter that we're withdrawing the charge ASAP so he doesn't have to come up to court."

The defendent's lawyer summed it up quite well. "The word gratuity comes from the Latin word for free," he said. "If it's a gratuity for the waitress' services, it can't be required."

The difference between what the man left for his meal and the bill (including "mandatory gratuity") was $11. He could've faced up to a year in jail.

Basically, if the restaurant had called it by a different name, service charge instead of gratuity, it would've been legal.

The owner of the restaurant said he's fairly sure he and the county will get sued over the incident.

I still oppose the idea of a separate service charge, whatever the name. I think the cost of a meal should reflect the total cost of everything the owner needs to pay his bills and make a profit. That's what fast food places do. That's what supermarkets do. That's what nearly every other service-providing business does. If the owner can't meet his costs and still make a profit without the service charge, just raise the prices of the menu items.

But in practice, it's tough. Living near a tourist town, I know how obnoxious tourists can be. Many of them don't bring their civility with them on vacation. Some have the attitude that "Without me and my money, this backwater would be nothing." Many of them are rude, loud, presumptuous and refuse to control their kids. I've been in restaurants with groups of tourists and though, "No matter how much of a tip they leave, it won't compensate the server for their idiocy. Unless it's 50%."

Still, though, if you run a restaurant in a tourist town, that's the reality. Raise the prices on the food so your servers can be properly remunerated for their aggravation.