Administrative Rules of Montana
Department 24 - LABOR AND INDUSTRY
Chapter 24.16 - WAGES AND HOURS
Subchapter 24.16.15 - Determinations Under and Interpretations of the Montana Minimum Wage and Overtime Compensation Act
Rule 24.16.1508 - TIPS OR SERVICE CHARGES
Current through Register Vol. 6, March 25, 2022
(1) A tip is a sum presented by a customer as a gift or gratuity in recognition of some service performed . It is to be distinguished from payment of a charge, if any, made for the service. Whether a tip is to be given, and its amount, are matters determined solely by the customer, and generally the customer has the right to determine who shall be the recipient of the gratuity.
(2) A service charge includes any arbitrary fixed charge added to the customer's bill by an employer in lieu of a tip, no matter what it is labelled (i.e., service charge, setup fee, house fee, service fee, labor charge, etc.).
(3) Where tips or service charges are charged on a credit card and the employer must pay the credit card company a percentage on each sale, the employer may pay the employee the tip, less that percentage. The employer must keep records of all such deductions.
Mont. Admin. R. 24.16.1508
Eff. 12/31/72; AMD, 2018 MAR p. 439, Eff. 2/24/2018
AUTH: 39-3-202, 39-3-403, MCA; IMP: 39-3-201, 39-3-402, MCA
This section was updated on 3/9/2018 by overlay.