The Gratuity does go to the employee - Server and a percent of it will go to the bartenders, bussers and kitchen employees. ... It is illegal for a business to take tips.

Do servers get gratuity?

As a service charge, automatic gratuity is compulsory and is not an amount that customers choose to pay. ... However, with automatic gratuity counting as a service charge and not tip, servers must be paid the legal minimum wage of their area for their shifts worked with only auto gratuity on guests' bills.

How does gratuity work for servers?

Service Charges

Catered functions and some fine dining establishments add gratuity, often referred to as a service charge, to the bill. It usually ranges between 15-20% of the total bill (before taxes). They then either divide the service charge up among staff as they see fit, or pay everyone a flat rate.