Service charges are part of the employer’s gross receipts. Sums distributed to employees from service charges cannot be counted as tips received, but may be used to satisfy the employer’s minimum wage and overtime requirements pursuant to the provisions of §§ 28-12-4.1 and 28-12-5. If an employee receives tips in addition to the compulsory service charge, those tips may be considered in determining whether the employee is a tipped employee and in the application of the tip credit.
R.I. Gen. Laws § 28-14.1-3
Service charges
P.L. 2022, ch. 245, § 1, effective June 28, 2022; P.L. 2022, ch. 246, § 1, effective June 28, 2022.
Official source: Rhode Island General Assembly. Reproduced from public-domain Rhode Island statutes; confirm against the official source for the current text. Not legal advice.