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It is legal to charge automatic gratuity on a federal level, but how it’s reported on taxes will vary state by state. California automatic gratuity law, for example, has its own law about how service charges are taxed, but it’s essentially the same thing as the federal laws (the California law came first, actually).

California tip laws – Can my employer take my gratuities?

Labor

tips, gratuity laws. California code 351.

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NYC restaurants sued over gratuity: Is a tip required?

In New York City,