My understanding, and I don't know from experience in 2023 as it's been a long time since I was a waiter, is that the server gets the full amount of the credit card tip. When I waited tables, the difference is that it became income. And subject to tax and SS.
If restaurants withhold or skim it, shame on them.
In many states it is illegal for managers/companies to take tips from workers actually making the sub, cappuccino, or drink under any circumstance, even if they get paid a living minimum wage that will be $15 an hour here in NY after New Years.
I once waited tables in a fake-upscale restaurant that told us one day we needed to "share" our tips with the back-of-the-house staff (namely an angry **** Dutch-chef that screwed up half the orders he made). I can't say what we told the owners, but it was basically go do a certain act to yourself and I'll only "share things with your cougar wife". I am someone that is generally pro-labor and have worked in the often bad industries of alcohol and food distribution as a server/bartender. And YES, in those situations, you tip or you are just a loser that cannot afford to eat or drink out (unless you of course get really bad service or the person is a creep, that's different) But I cannot recall the last time I didn't tip even the worst bartender or server at least something, and I over-tip the hard workers that excel at their craft at lot. But I didn't make the standing minimum wage, I made less per hour and did well via tips. In NYS, if a "tipped worker" in a restaurant does not make the hourly minimum, they are supposed to get a check at the end of the month to make minimum wage, but I am sure there are a lot of mom-and-pop diners that do not do this...
Tip-sharing with managers or regular hourly pay staff is completely illegal in the bar-restaurant industry (in most states) as servers/bartenders are paid on a different wage scale and that's why we have "tipping". I was once told this started in the Great Depression as a means for the wealthy to transfer money down and still go to the drinking holes and eating establishments they loved as a subsidy for workers and owners, so they didn't close and the workers could afford to eat the food they served, in the "industry" but IDK if that is true. I believe that you are a complete scumbag who should never eat out if you do not tip your server or bartender often making a lot less per hour because that is the system we have in the US.
But the "tipflation" due to the as mentioned proliferation of the POS systems expectant at getting an extra grift for workers already making more than minimum wage is just egregious and I generally refuse to pay anything extra for an already jacked-up price of a sub or pizza. The exception being if I have a big order for family, then I'll toss a few bucks out but in no way should it be mandatory for kids working behind the counter at a Chipotle already making $15-20 an hour! There is a difference and some should always be tipped while others it is purely optional, but unfortunately this electronic POS systems have blurred the line. and I think this should be regulated as it is borderline fraud. But for servers and bartenders, do not be a Mr. Pink:
