Dodd/Frank Simplifies Waitress Compensation

This little ditty is floating around the Internet right now and aptly applies the new loan officer compensation rules from the Federal Reserve to another industry to show how inane it really is.

Regulators are proposing a change in how food servers in the United States are paid.

Here is a breakdown of the new regulation and the main components.

Waiters / Waitresses will no longer be able to have their tips or other compensation based on the type of the meal they serve, the server’s experience level, or service levels to the customer.

For example: a Waiter or Waitress may not be paid more for a steak dinner than a Shrimp or chicken dinner. A Waiter or Waitress must be paid the same regardless of whether the food comes out hot, warm, or cold or due to any delay in food preparation while the server was on break.

When customers order their meal, they must be presented with a minimum of 3 different menus from competing restaurants in the area.

The customer must wait 3 hours to order their meal after signing a disclosure showing what type of salad, starch and vegetable will be served with the meal. If the restaurant owner provides these “ancillary” items – he may not charge a higher margin on one item over the other.

The waiter/waitress must be either paid by TIPS from the consumer, or by cash or credit card at the cashier – NOT by BOTH.

***Note that for these purposes, both the Restaurant itself AND the Wait Staff are considered “Servers”, thus – if the cash or Credit card option is used to pay the cashier (owner of the restaurant), then NO TIPS may be accepted by the waitress/waiter. A “Server” may not “Steer” a consumer into a meal by a certain animal type if they will receive greater compensation from that meal than in other meals which may have been offered the consumer – unless the offered meal is in the consumer’s best interest.

It is unclear within the proposed law how far this legal definition goes, and the FDA is offering no clarification. If the same steak dinner is available 2 blocks away, is it in the best interest to send the client to the competing restaurant? All questions that have severe penalties will only be clarified during future inspections of the restaurant, by the Food Inspector and at that time the Food Inspector will let the restaurant Owner and Servers know if they are in violation of rules that were not set-out at the enactment of the compensation regulation.

Lastly, in another unrelated law that is being considered called QRM, or Qualified Reluctant Meals- certain Restaurant owners should be aware that they may have to eat 5% of the consumers’ meal prior to serving.

  1. Leave a Comment

Leave a Reply