In a legal manner, a mandatory service charge is not considered a gratuity or gratuity. Often, restaurants add these types of charges to large group bills, or when they host contracted events. In most states, this money belongs to the owner of the restaurant and is subject to sales taxes, although the owner in question can distribute it among the waiters and waiters in order to fulfill their obligations with respect to to the minimum wage. The state of Michigan has a law introduced in 2002 that requires restaurants to establish clearly when mandatory service charges are shared among employees, and when they are retained by the restaurant owner; however, there are no current laws that require restaurants to disclose this circumstance.
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