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Attorney2, Attorney
Category: Legal
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Experience:  28 Years In General Practice,
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what is the legal percentage a restraunt owner can charge their

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what is the legal percentage a restraunt owner can charge their employees for the use of credit card machine in the state of PA?
Hello and thank you for your question. Just to clarify can you tell me how they employees would be using the machine?
Customer: replied 3 years ago.

Where my wife works they charge her 4% when customers pay with a credit card. Every place I've looked on line says they can charge up to 3% for service fee. I just want to know what the legal amount is.

Under the Fair Labor Standards Act you can charge 3%.

This is the information provided by the U.S. Department of Labor at

"Credit Cards: Where tips 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. For example, where a credit card company charges an employer 3 percent on all sales charged to its credit service, the employer may
pay the tipped employee 97 percent of the tips without violating the FLSA. However, this charge on the tip may not reduce the employee’s wage below the required minimum wage. The amount due the employee must be paid no later than the regular pay day and may not be held while the employer is awaiting reimbursement from the credit card company."

Please do not hesitate to ask me any additional questions that you may have regarding this matter. It would be my pleasure to continue to assist you.
Customer: replied 3 years ago.

So if I am understanding the information provided to me correctly the legal amount a restuarant owner can charge their servers (for tip amount only) is 3% and not the 4% that appears to be being deducted from her credit card tips on her pay stub in the state of PA?

That is correct. I was surprised and troubled when you said 4%. That is Federal Law. Please let me know if you have additional questions for me.
Customer: replied 3 years ago.

What legal action, if any, can we take? Should we contact a lawyer in our state?

You can report them to the Department of Labor at

You can certainly hire an attorney if you would like to file an action against the employer.

To go through the proper chain you should start by filing a complaint.

I hope that the information that I have provided has been helpful to you. If you are not satisfied with my service please let me know and I will request a refund for you. Thank you.

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