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Global News
23-05-2025
- Business
- Global News
Confusion over WorkSafeBC tip rules has restaurants concerned
Two organizations that represent restaurants across B.C. are asking WorkSafeBC to pause enforcement of what they call a 'confusing and punitive' way tips are calculated. Both the British Columbia Restaurant and Foodservices Association (BCRFA) and Restaurants Canada say the directive from the Canada Revenue Agency (CRA) and the directive from WorkSafeBC are in opposition to each other. They said WorkSafeBC's policy, which is newer, was 'quietly implemented' without any consultation or notice and has ended up surprising restaurants that have been audited. However, WorkSafeBC told Global News that because of industry concerns, the new tip policy has been paused and the rules have not been implemented. The BCRFA says businesses are still being audited and fined for non-compliance. Ian Tostenson, president and CEO of BCRFA, told Global News he knows of seven restaurants that have been audited since November 2024 and says some have been fined. Story continues below advertisement Under federal CRA rules, credit card gratuities are to be paid out in cash at the end of every shift and not included in employer payroll records. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy However, under WorkSafeBC's gratuity policy, employers must record all verifiable gratuities as controlled gratuities, meaning a mandatory service charge or a predetermined percentage added to the bill to cover the tip and then include them in assessed payroll. According to WorkSafeBC, assessed payroll 'refers to the portion of an employer's payroll that is used to calculate their WCB (Workers' Compensation Board) premiums.' 4:20 Tips for managing holiday spending BCRFA and Restaurants Canada are jointly calling for an immediate halt to audits and enforcement action on WorkSafeBC's gratuity policy. 'There has been no notice to the industry, no training, and no orientation,' Tostenson said. 'Restaurants are being audited and fined for an unfair confusing WorkSafeBC gratuity policy directive they were not even unaware of. This is unfair and reckless.' Story continues below advertisement The organization said that the gratuity policy is leading to additional red tape and costing audited restaurants thousands in additional payroll costs at a time when the industry is already struggling. 'Restaurants are between a rock and a hard place on gratuity policies,' Mark von Schellwitz, Restaurants Canada's vice-president for Western Canada said in a statement. 'They need to either comply with federal CRA direct gratuity rules where credit card gratuities are to be paid out in cash at the end of every shift and not be included in employer payroll records or comply with WorkSafeBC's gratuity policy that requires employers to record all verifiable gratuities as controlled gratuities and include them in assessed payroll. 'This puts restaurants into an impossible position of determining which contradictory gratuity policy to comply with.'
Hamilton Spectator
23-05-2025
- Business
- Hamilton Spectator
WorkSafe BC's confusing and contradictory gratuities as assessed payroll policy must be immediately paused and reassessed.
Vancouver, May 22, 2025 (GLOBE NEWSWIRE) — Both the British Columbia Restaurant and Foodservices Association (BCRFA) and Restaurants Canada are calling for WorkSafe BC to pause enforcement of their confusing and punitive all verifiable gratuities as assessed payroll policy directive that conflicts with Canada Revenue Agency (CRA) rules on direct versus controlled gratuities. WorkSafe BC must undertake a consultation to find an alternative policy solution. The policy directive was quietly implemented by WorkSafe BC without any consultation or notice given to industry and has surprised restaurants who have been audited by WorkSafe BC. These audits often result in surcharges and penalties, forcing restaurants to choose between complying with conflicting gratuity definitions of direct versus controlled gratuities between the Canada Revenue Agency and WorkSafe BC. For over a year both organizations have been meeting with WorkSafe BC urging for the policy to be paused and reassessed. 'There has been no notice to the industry, no training, and no orientation' said Ian Tostenson, President and CEO of BCRFA. 'Restaurants are being audited and fined for an unfair confusing WorkSafe BC gratuity policy directive they were not even unaware of. This is unfair-and reckless'. 'Restaurants are between a rock and a hard place on gratuity policies' said Mark von Schellwitz, Vice President Western Canada for Restaurants Canada. 'They need to either comply with federal CRA direct gratuity rules where credit card gratuities are to be paid out in cash at the end of every shift and not be included in employer payroll records or comply with WorkSafe BC's gratuity policy that requires employers to record all verifiable gratuities as controlled gratuities and include them in assessed payroll. This puts restaurants into an impossible position of determining which contradictory gratuity policy to comply with.' Enforcement of WorkSafe BC's relatively unknown gratuity policy is resulting in additional red tape and costing audited restaurants thousands in additional payroll costs at a time when the hospitality industry is already suffering. In 2024 restaurant bankruptcies hit record levels and more than half of BC's restaurants are unprofitable as they contend with large inflationary operating cost increases, declining consumer spending and labour shortages. BCRFA and Restaurants Canada are jointly calling for: 'We are calling on WorkSafe BC to work with the hospitality industry as partners to reset their gratuity policies to make them consistent, fair and workable, for all employers with employees that earn gratuities', added both Tostenson and von Schellwitz. About Restaurants Canada Restaurants Canada is a national, not-for-profit association advancing Canada's diverse and dynamic foodservice industry. Restaurants are a $120 billion industry employing nearly 1.2 million Canadians and is the number one source of first-time jobs in Canada. About BCRFA The BCRFA is the largest and most progressive industry organization in British Columbia. We are a collective group of restaurant professionals devoted to the sole purpose of creating the most favourable business environment for our members.
