You Thought You Were Tipping Staff At New York JFK Airport Restaurants—But It Can Be Used To Cut Their Pay
Reader Aaron shares receipts from a recent trip through American Airlines terminal 8 at New York JFK, where concessions giant HMS Host is finding new creative ways to separate you from your money. They’re stacking on fees and inflated suggested tips – and, it appears, pocketing some of the money for themselves.
Greetings from JFK. I’m about to fly to [Miami] for the weekend. I’m killing time at Terminal 8 and don’t have lounge access here… Idlewild Wine Bar here not only “suggested” post-tax amounts, it did so after including a “3% Employee Benefits & Retention” charge. THEN, after charging my credit card, they added a “Round Up 4 Charity” line!
Former Priority Pass Restaurant Bobby Van’s at New York JFK Terminal 8
There’s a 3% ’employee benefits and retention’ fee added to the check. This does not ‘go to’ employee benefits. It goes to the employer’s bottom line.
- Employees get their benefits as part of their employment package, whether or not you eat there. Your meal doesn’t increase the benefits they receive. This is top-line revenue.
- And since the money could even exceed the cost of benefits, and doesn’t go to benefits, they also label it ‘retention’ which can just mean wages – you have to pay people to retain them.
New York Deli which was once Brooklyn Deli at New York JFK Terminal 8
Then there is a suggested tip amount. It’s based on the post-tax total. They are suggesting your tip more because you’re paying a benefits surcharge on top of your meal.
And once you’ve added on the 3% fee and suggested tip on that fee, they ask you to top off your bill again-for an unspecified charity.
A donation in your name has been made to the Human Fund?
But the hidden piece here – and most misleading – is tipping at New York airport. That’s because employers are allowed to reduce the airport-wide $19.75 minimum wage by tips received. As a result, the amount that customers tip:
- can reduce the wages paid to the employee
- and, instead, go straight into the pocket of the business
New York JFK Terminal 8
Philadelphia airport last year decided to allow all concessions to charge passengers more than posted prices. The 3% surcharge is because the airport has price caps (15% above street pricing), so vendors can’ raise prices. The airport didn’t want to relax that. So they pretend the surcharge isn’t a price increase. By the way, the 3% ’employee wage and benefit offset’ doesn’t go to employees, it goes straight to concessionaires.
American Airlines New York JFK
I’m not even sure whether this is better or worse than when an airport requires you to add a tip for self-checkout.