ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Diner notices an 'absurd' 5% waiter health insurance fee on food bill — and even had to pay tax on it

"These companies are desperate to make you blame the employee for the extra cost instead of them accepting a slightly lower profit margin."
PUBLISHED SEP 12, 2024
Credit:	Screenshot from the Reddit post | Getty Images - Photo by Georgijevic (Representative)
Credit: Screenshot from the Reddit post | Getty Images - Photo by Georgijevic (Representative)

While tipping has dominated the discussions on unnecessary charges by restaurants, a new item has been added to the list. In a viral post, a Redditor shared that they had to pay an absurd 'employee health insurance' charge on their restaurant bill. Users were shocked to see how far restaurants would go to get every penny out of customers' pockets. 

Representative image | Pexels | Photo by Pixabay
Representative image | Pexels | Photo by Pixabay

In the Reddit post shared on the popular forum r/ MildlyInteresting, the customer shared an image of the bill. A meal at a restaurant named GIANT in Chicago costs the user about $118. However, not all of it was for the food. 

Upon looking closely, it appears that the restaurant charged 5% extra on the bill for the server's health insurance. What's more bizarre was the fact that the customer had to pay tax on the $5.65 employee health insurance charge as well.

Screenshot from the post | Reddit | r/MildlyInteresting
Screenshot from the post | Reddit | r/MildlyInteresting

People were baffled to see the weird charge. "100%. US restaurant norms are getting out of control," commented user u/Mac30123456. "I travel for work and have to dine out constantly. This IS NOT a norm," countered u/Dysfunxn.

Screenshot from the comments | Reddit | r/MildlyInteresting
Screenshot from the comments | Reddit | r/MildlyInteresting

Meanwhile, some wondered how far this cash grab would go. "Next up: Property tax fee- 8%, Power & Water Utility fee - 3%, CEO Bonus fee - 22%, Doubling the Profit fee - 200%" joked a user. "These companies are desperate to make you blame the employee for the extra cost instead of them accepting a slightly lower profit margin," added u/FoolRegnant.

While some were shocked, one user u/charleyxavier suggested, "Apparently a bunch of restaurants in Chicago did this years ago." 

This was indeed true, as last year TikTok user Ashley Nichole (@ashnichole_xo) also went viral for sharing a similar story. She shared that on her trip to one of her regular restaurants in Southern California, she came across the same weird charge.

While paying a bill at Osteria La Buca, an Italian restaurant in Sherman Oaks, Nichole saw that her bill included a 5% employee welfare charge. She explained that as they got curious, they inquired about the charge to the hostess. The server explained that the charge was indeed for the staff's healthcare plan. 

Viewers of Nichole weren't happy about the charge as well. "That should be illegal to charge customers for staff health care insurance," said @candaceleah75.

Several states and the FTC have previously tried to remove the junk charges from customers' bills. However, restaurant operators have fought back claiming that the fees are necessary to keep their menu prices low and improve employee compensation. 



 

In a CBS report, a restaurant owner explained that the surcharge is common across the industry. He noted that restaurants have been charging customers for health insurance ever since the Affordable Care Act passed in 2010. The act mandated companies with 25 or more employees to provide full-time employees with health insurance.  However, the owner also pointed out that his restaurant provided customers with an option to opt out of paying the charge. 

For more such posts, follow r/MildlyInteresting on Reddit.

MORE ON MARKET REALIST
Fans of the show caught on to the trick the host was talking about, although he didn't reveal it.
2 hours ago
At one point, it seemed like the contestant would fail to win the car.
2 hours ago
Experts expect buyers and sellers to find common ground while negotiating in 2026.
5 hours ago
Individual and bankruptcy filings have been on the up towards a return to pre-COVID levels.
8 hours ago
One GoFundMe page raised over $480,920 for the Ford employee within 24 hours, while another raised over $330,055.
11 hours ago
"Iceland? I am jealous!!! Oh, yeah, I'm jealous of the $40k, too, LOL. Gr8 solve, Mat!" a fan reacted.
15 hours ago
Despite widespread economic concerns, big banks who posted big profits remain bullish.
1 day ago
One simply has to look at the number on the product tag to gauge its quality.
1 day ago
The contestant was quite nervous towards the end but played the game perfectly.
1 day ago
The retailers were part of a group that sued banks and credit card companies two decades ago.
1 day ago
The President signed an executive order about the name change back in September.
1 day ago
The company laid off more than 5,500 employees and that affected its income for the year.
1 day ago
"We're going to have tremendous workforce availability. We're also going to have robots helping us," Trump had stated earlier.
1 day ago
"He almost had it, that was so close," an upset fan said about the disappointing loss.
1 day ago
The President reiterated that believes the affordability crisis is a Democrat hoax.
2 days ago
The contestant was at the show's taping for the first time and was a big fan of Carey's work.
2 days ago
AI is making online shopping easier, but it’s also helping scammers steal more money.
2 days ago
The trend in investors selling US stocks and diversifying in European stocks is growing.
2 days ago
BlackRock is also ready to bet big on the AI boom as it feels the tech is here to stay.
2 days ago
The products were sold both in stores and online, but no illness has been reported yet.
2 days ago