So the 20% charge is not a tip?

Posted July 6th, 2015 by LuAnn Bean & filed under Accounting Information Systems, Accounting Principles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting.

The restaurant, Per Se, must distribute $500,000 in compensation to current and former employees as ordered by the settlement struck with the New York Attorney General. The Manhattan eatery is notable for its $300-plus prix-fixe menus.

Questions:
1. How did the restaurant violate New York labor law and how did they remedy this situation for the future?
2. How much does the average waiter make per year at Per Se, according to the article?
3. What types of general ledger accounts did the 20% service fee pay?

Source:
Lewis, C. (2015). One Of America’s Priciest Restaurants Short-Changed Its Servers On Tips. BuzzFeed.com, July 2 (Retrievable online at http://www.buzzfeed.com/coralewis/pricy-restaurant-short-changed-staff-on-tips#.xoOZbzBlb)

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