The Delaware Department of Labor has determined that withholding credit card fees from tips for servers is illegal in the state, following multiple complaints. According to the Delaware Code, gratuities are the sole property of the employees and cannot be taken or retained by employers. While there are instances where employers can withhold wages, this does not extend to credit card processing fees from tips. The Department of Labor is informing all restaurant owners and businesses with tipped employees about the law. Attorney General Kathleen Jennings emphasized the importance of fair treatment and proper compensation for employees who rely on tips as their primary income. She commended the DOL for their investigation into the issue. More information on tipping practices can be found on the Delaware Department of Labor website. It is essential for employers to follow the law to ensure that employees are receiving proper compensation for their work.
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