Ontario NDP MPP Michael Prue wants to see "tipping out" banned in Ontario.
The practice, in which servers are required to hand over a percentage of their tips to management, is common in the restaurant industry, but the finance critic wants to see it end.
Prue introduced Bill 114 -- called the "Protecting Employees' Tips Act"-- at Queen's Park on Monday.
"It's only fair and natural that people who do the work and who receive the tip get to receive the tip, the whole tip," said Prue in a Thursday interview on CTV's Canada AM.
Prue said he does not oppose "tip-sharing," a practice in which servers split their tips with bartenders, busboys and other kitchen staff -- but said tipping out is a "real" and "growing" problem.
"We hope, by the bill, to stop this," he said.
Prue said the NDP has uncovered instances where the server is required to pay management up to 5 per cent of gross, regardless if a tip is given at all. In some instances this leaves the server "paying for the privilege to serve you," he said.
This is the second time Prue has brought the bill to parliament. In 2010, Prue introduced the bill, which later died after its second reading due to the calling of the provincial election.
Liberal Natural Resources Minister Linda Jeffrey has stated that she believes the practice is acceptable if the server is told upfront by management. Prue disagrees.
"I don't think it's ok at all," he said. "Quite frankly, people are desperate in some circumstances to get a job and are likely to agree to almost anything."
Under the Income Tax Act the server must declare 15 per cent of their total sales as tips, while owners who take tip-outs are not required to pay taxes on this money.
Also, servers in Ontario earn $8.90 an hour, compared to the regular minimum wage which is set at $10.25 an hour. The expectation, said Prue, is that the server will make up the difference in gratuities.
"We've uncovered cases where all the tips are taken by management, so they are working for $8.90 an hour," said Prue.
Prue believes the bill has broad-based support across all three parties, and that the bill will pass.
"The support has been overwhelming. I am very heartened by this. Liberal members of the legislature have told me they're going to support it. Conservatives are giving me background information. Through support of all parties, we can get this through."
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Ontario NDP wants to ban 'tipping out'
ctvtoronto.ca
Published Friday, June 15, 2012 11:03AM EDT
The practice of 'tipping out,' where servers are required to pay restaurant management a portion of their tips, may soon be banned. (AP photo)