gratuity vs tip

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Department of Labor
https://dol.ny.gov/system/files/documents/2021/12/tips-and-gratuities-frequently-asked...
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Tips and Gratuities - Frequently Asked Questions
Learn how tips and gratuities are handled under New York State law and wage orders for different industries and occupations. Find out the difference between tip credit and tip allowance, and how they affect … See more
What is a tip?
A tip, or “gratuity,” is money given by a customer to an employee for service provided to … See more
Department of Labor
How does the Hospitality Wage Order define a food service worker, a service employee, and a non-service employee?
Under the Hospitality Wage Order: food service worker is any employee who is primarily engaged in the serving of food or beverages, who also regularly receives tips. This includ… See more
Department of Labor
Can an employer withhold cash tips left for an employee, and provide them to employees when they receive their regular pay?
When customers pay tips in cash, employers may, as a service to their employees, allow employees to leave cash tips earned over the course of a pay period with the em… See more
Department of Labor
Does the Labor Law consider service charges “tips”?
There is a rebuttable legal presumption that any charge which is not for food and drink is a tip. The Hospitality Wage Order includes provisions for notifying customers about servi… See more
Department of Labor
Do employers have to notify delivery customers that a “delivery fee” is not a tip?
Yes. Employers must tell their customers who receive deliveries that the delivery fee identified on their bill, statement, receipt, or other document detailing the delivery is not a tip/gratuit… See more
Department of Labor
What is a gratuity payment India?
A gratuity is best known for being a tip, but it can also be referred to as a service charge, corkage fee, or similar terms. Your Gratuity Payment India clarity is just one click away. What is a Tip? A tip is another word for what most people call pocket change. It is money that a customer gives to an employee for service.
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Table of Contents
What is a tip?
How does the Hospitality Wage Order define a food service worker, a service employee, and a non-service employee?
Can an employer withhold cash tips left for an employee, and provide them to employees when they receive their regular pay?
Does the Labor Law consider service charges “tips”?
Do employers have to notify delivery customers that a “delivery fee” is not a tip?
What is a gratuity payment India?

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Gratuity and tips are both forms of monetary appreciation for services rendered, but they differ in terms of definition, context, and application ¹ ² ³ ⁴.

Comparison of Gratuity and Tips

Attribute	Gratuity	Tips	Sources
Definition	Mandatory charge added to bills	Voluntary payment to service providers	¹ ² ³ ⁴
Context	Formal settings like restaurants, hotels	Informal settings like taxis, salons	¹ ² ³ ⁴
Payment Method	Added to the bill automatically	Given directly to the service provider	¹ ² ³ ⁴
Tax Implications	Service charge, taxed differently	Part of employee's income, taxed	¹ ² ³ ⁴
Legal Status	Mandatory and legally binding	Voluntary and discretionary	¹ ² ³ ⁴