The definition of "auto - gratuities" as a "service charge" will be an extremely damaging change for the Restaurant and Hospitality Industry. Because of the narrow profit margins of restaurants, this ruling making it illegal to apply an auto gratuity will not only deeply burden the income of individuals working in the restaurant industry, but will make it much harder for small businesses such as restaurants to keep valuable staff. We believe that there has not been adequate research done by experts before this ruling has been made. Rather than making a sweeping change to ban all auto-gratuities, restaurants should be regulated to assure that they are following laws about tip declaration
Ultimately, taking these away will make it even more difficult for restaurant workers to earn a living.