No Tip Restaurants Find Alternate Path

The Maine Sunday Telegram reports that due to an “obscure law” restaurants that have chosen to eliminate tipping are having to do so by raising the prices directly rather than adding a service fee.

At the heart of the matter is a state law that allows service charges in lieu of tips, but only at private clubs or banquet facilities. For all other establishments, service charges cannot be collected, pooled and divided up among staff as is allowed in other states.

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