
In recent years, the amount of litigation involving tips, gratuities, and service charges in the hospitality industry has increased exponentially. Both hotel and restaurant operators have found themselves to be the targets of a variety of claims arising from the manner in which they pay their food and beverage staff. As a result, it is important to understand the difference between gratuities and service charges when negotiating any kind of agreement for a group function or event. The proper designation of these items in contracts as well as the underlying documents can be instrumental in helping to prevent compensation disputes and lawsuits. READ MORE