Controversial “Tip Law” Now Official

If you go out to dinner this weekend in Philadelphia and leave a $20 tip for your server on a credit card, you can rest assured that the server will get the whole thing. Bill #110341, which Mayor Nutter signed into law at the end of November, officially took effect yesterday, meaning that restaurateurs can no longer deduct a portion of credit card service fees from gratuities left on credit cards. You may remember that Marc Vetri spoke out against the measure, claiming that the mayor and City Council didn’t really understand what they were doing. Whether they did or not, it’s now on the books, and any restaurateur who doesn’t comply can get hit with a $2,000 penalty. For each server. Ouch.