Alberta politician proposes new regulations on tips

Global News

25-04-2025

It's a rite of passage for most folks after a good night out — leaving a little extra for the person who took care of you after enjoying good food, drink and service.
But Alberta NDP MLA Christina Gray says where that tip money goes may surprise you.
'In Alberta, tips and gratuities aren't considered wages — there are no rules,' Gray said.
'And in more places than you would ever imagine, that money doesn't go to the workers.'
Gray says that's why she introduced Bill 210 into the Alberta legislature — a private member's bill that aims to introduce server-friendly regulations on tips.
If passed, Alberta would join seven other Canadian jurisdictions with similar guidelines — and give more service staff a fair shake.
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'It can be used and taken by the owners and managers, and either put in their pockets — or used to fund the operations.'
It's something Varbar Wine Bar owner Mhairi O'Donnell says happens more than people think.
'We don't do it here… and we never have… but I would say it's probably the norm,' she explained.
'(Businesses like us) can just take all the tips and do what we want with them, and if we give them to you it's a bonus, and you get paid minimum wage? That seems like a step too far.'
O'Donnell has been involved in the hospitality business for years.
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At Varbar, she offers her employees competitive wages and benefits packages — a rarity in the industry.
'You can sign up for benefits on your own, but if someone's navigating that with you, it makes your life easier.'
'(My staff) aren't working for me, they're working with me. It's very much a team sport.'
The Alberta Hospitality Association is also throwing its support behind Gray's bill.
'While there are exceptions to the rule, the restaurant owners we work with on a daily basis view tips as a benefit for their employees,' the Association said in a statement.
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'Engaging in practices that withhold tips from employees would offer no competitive advantage in this already difficult environment.'
Kelly Paquette has seen it from both sides.
Currently a server and bartender, she spent some time in a management position at a Calgary restaurant, where she received a portion of the tips service staff received.
'Personally for me in that management position, I didn't feel right receiving that,' she explained.
'My job was to support servers, bartenders, whoever is around me. My job wasn't to serve tables.'
Commonly in the restaurant industry, service staff are required to 'tip out' a certain amount of money each shift. It's typically re-allocated to support staff like hosts, chefs, and bussers.
Paquette and O'Donnell agree — those staff deserve a share, too.
But O'Donnell says owners like her shouldn't be dipping their hands in that pot.
'If (owners) don't make enough money with the structure that you have in your restaurant that you have to skim tips to make ends meet, you don't profit. You have a flawed system.'
The Hospitality Association emphasized in their statement to Global News the practice of tip pooling for support staff shouldn't be hindered by any potential regulations.
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'If passed, (the association) will work with our members to ensure they understand the documentation requirements for employee-determined pools.'
Tips can be a touchy subject, but the emphasis those dollars bring isn't lost on Paquette.
'It really shows when you're going out to restaurants, it's expensive to dine out,' Paquette said.
'That's why I encourage people to continuously give better service — because people are paying for the service they're getting.'
'It's not the easiest job,' O'Donnell said. 'If we didn't have restaurants, society would collapse.'
'All through Europe, serving is an honourable career. But in North America, we treat it as a bit of an afterthought.'
Paquette is pursuing a career in real estate, but still serving right now.
'I'm a born hustler… I want to make as much money as I can so I'm set up in the future, my future children are also set up.'
Gray says the bill will be up for debate in the Alberta legislature soon and is hoping to earn support of her United Conservative Party peers across the aisle.
'If there's something that needs to be tweaked, let's talk about that and let's get that done.'