Not Everyone Is Thrilled About the Passing of the Gratuity Protection Bill

City Council approved the bill.
City Council approved the bill.

Somewhere within the mayhem of Occupy Philly protestors staging their own mock meeting, and Councilman Jim Kenney handing out Primo Hoagies, City Council managed to pass Bill #110341, better known as the Gratuity Protection Bill or simply Tip Bill. When signed into law, it will prohibit restaurateurs and owners of other businesses where employees rely on gratuities from taking a cut of tips to cover credit card transaction fees. While it’s viewed as a win for servers, restaurant owners see it as an added burden to their businesses, which are already taking a hit from an economy that’s on life support. “I don’t think City Council members truly understand the reality of it,” Marc Vetri told Grub Street. “They think they’re doing something good, but servers aren’t going to make anything more than a few extra dollars a night.”

“For servers its a few extra dollars a night,” Vetri added. “But for us, the small business owners, it adds up to thousands of dollars a year.”

Councilman Bill Green, who was one of the two council members who voted against the bill, described it as nothing different than “a targeted tax increase.”

Aside from the added expenses his restaurants will incur from the law, Vetri said what bothers him more is, none of the bill’s supporters bothered reaching out to him or any other of the city’s restaurateurs to get their side of the story.

“The issue isn’t just the bill,” Vetri explained. “There was no discussion. City Council didn’t ask for our input. They wouldn’t even meet with Stephen Starr or take my phone call.”

Just as Jim Kenney and Philly Restaurant Opportunities Center cited a weak economy as a reason for taking action on the issue now, Vetri said that the economy is also a reason to create incentives for small business owners. “We get them and we open more restaurants and we’re able to create more jobs,” he said.

So what’s the next step? Vetri said its going to be business as usual.

“I don’t have time to fight nonsense like this,” he said. “It’s not the end of the world. We’re still out there doing what we do, and trying make the city an awesome place to live.”

Tension surfaces between Councilmen Green and Kenney

Earlier: City Council Decides on the Gratuity Protection Bill Tomorrow

Not Everyone Is Thrilled About the Passing of the Gratuity Protection Bill