Alcohol & Advocacy has written previously about the law of social and commercial host liability; two separate but related categories of relationships that may attract legal liability. The recent decision of the Ontario Superior Court of Justice in Wardak v. Froom suggests that the categories of relationships that may attract legal liability could soon be expanding.
Restaurants banning tipping and transitioning to “gratuity included” pricing is not a new concept. While such arrangements rarely last, from time-to-time news breaks of avant-garde restaurateurs who attempt to throw off the tipping yoke, and launch eateries where management (and not patrons) have control over staff compensation leading (in theory) to a more equitable workplace. The thought process is that gratuities left to wait staff, even in establishments that engage in some form of tip pooling, are rarely distributed “fairly” to the important people who work in the kitchen, clear the tables, and take the reservations. The solution? Mark-up menu prices by 20% and pay all staff a living wage.