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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.

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