A customer taps a preset percentage on a checkout screen, but who has legally earned the resulting tip?

That question is becoming more difficult as tipping expands beyond full-service restaurants into delivery apps, self-service counters, automated kiosks, bakeries, retailers, and other businesses where the employee providing the service may not be readily apparent.

The technology may be new, but employers remain responsible for determining whether a payment is a tip or a service charge, identifying the employees entitled to receive it, complying with federal, state, and local restrictions, and maintaining records showing that the money was handled correctly.

“Gig economy and delivery companies likely present the biggest confluence for tipping issues because they still present certain components of the traditional hospitality industry while they are constantly evolving,” Laurent R.G. Badoux, a shareholder at Littler, told Checkpoint News. “Restaurants where guest interaction is becoming more automated also present the potential for new compliance challenges.”

To dig deeper, visit the original article on the Thomson Reuters blog.