The British Columbia Restaurant and Foodservices Association (BCRFA) and Restaurants Canada are calling on WorkSafeBC to pause enforcement of its tip policy, citing confusion and punitive measures that have already affected several restaurants.
Background
- Since November 2024, seven restaurants have been audited, with some facing fines for non-compliance during these audits.
- The associations argue that businesses are still being audited for non-compliance despite the new policy being paused.
Concerns Raised
A representative from one of the organizations stated, "We were quietly implemented without any consultation or notice. This has ended up surprising restaurants that have been audited."
WorkSafeBC’s Tip Policy
- WorkSafeBC’s tip policy requires employers to record all verifiable gratuities as controlled gratuities, which must be included in assessed payroll.
- This policy contrasts with federal CRA rules, which mandate that credit card gratuities must be paid out in cash at the end of the shift by the employees who received them.
The associations claim this discrepancy has led to confusion among businesses, causing them to believe they are compliant with regulations when they may not be meeting both provincial and federal standards.
Call for Clarity
A representative from another organization expressed concern, stating, "We’re concerned about how it’s going forward. We want clarity on what we need to do."
WorkSafeBC has indicated that it has paused the implementation of the new tip policy due to industry concerns. However, both associations are requesting an immediate halt on audits related solely to compliance issues stemming from this confusion.
Statements from Leaders
- BCRFA CEO Ian Tostenson stated, "We would like WorkSafeBC to immediately halt all audits related solely to compliance issues stemming directly from confusion over how different government agencies handle tipping practices within workplaces until there is a resolution."
- Restaurants Canada President Todd Dubeau echoed this sentiment, urging WorkSafeBC to take similar action.
Impact on Businesses
The organizations emphasize the need for a resolution before more businesses are adversely affected by what they describe as a confusing and punitive method of calculating tips.
A restaurant owner who was fined $1,000 after failing an audit shared their frustration: "It’s just really frustrating because we’ve tried our best but we don’t know if we’re doing it right or not."
Conclusion
WorkSafeBC has not provided information on whether any fines will be waived or refunded if enforcement resumes under the current rules. The ongoing confusion surrounding the tip policy continues to pose challenges for restaurants in British Columbia.
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