The province is passing a law that makes it illegal for employers to take a share of servers’ tips.
The Protecting Employees’ Tips Act was introduced following several attempts from the NDP to get a similar law through. It was originally brought forward by NDP MPP Michael Prue, who lost in the 2014 election to Liberal Arthur Potts.
The law bans employers from withholding their employees’ tips, unless employees are pooling all of the gratuities to redistribute them among all employees, in which case they can be temporarily held.
Potts says the new bill levels the playing field for everyone after hearing stories of employers taking 25 or even 50 per cent from the tip pool for themselves.
Prue, as well as NDP Leader Andrea Horwath are accusing Potts of “watering down” the law by not banning employers from recovering credit card fees from the tip when a customer pays by credit card.
Potts says the rules around credit card fees will be defined through regulations.