Business & EconomyCalifornia restaurant ALLEGEDLY charging customers 4% EMPLOYEE HEALTH INSURANCE 

California restaurant ALLEGEDLY charging customers 4% EMPLOYEE HEALTH INSURANCE 

California is one of the blue states in the United States. Currently, a restaurant there is charging their customers a 4% charge under the listing of employee health insurance. However, this is not sitting well with conservatives as they feel employers should provide proper benefits for their staff. 

A few months back, a TikToker filmed the same incident. According to Todayan Italian restaurant in Sherman Oaks, California, a customer came across an unfamiliar charge on her restaurant receipt. In a TikTok video that has nearly a million views, Nichole recounts the peculiar incident. 

Furthermore, she elaborates on how she selects the restaurant to meet up with a friend for a meal on a rainy day in Los Angeles. The woman draws attention to a $4.75 fee labeled “employee health” at the bottom of the receipt. She then prompts her audience with the question of whether they notice the 5% charge for employee health.

Should restaurant owners deliberately charge customers for their employee health insurance? 


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Several conservatives on Twitter are stating that this is not a normal business practice. Furthermore, standard businesses would typically factor in the costs into the final price of the product. Twitter users add that typically, health insurance would cost the same every month. In addition to this, restaurants should not be charging for health insurance on the percentage of the entire bill. 


Following that, users are stating that the restaurant owners are avoiding to perform their own responsibility. Now, they are focusing on passing the responsibility to their own customers to directly decide on whether their staff needs health insurance or not. Furthermore, the customers are actually able to request a deduction on the 4% health insurance charge. 

Is tipping the thing of the past? 

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There are some restaurants that will now charge their customers a 20% mandatory service charge on their receipts. This is to pay their employees a liveable wage. For most of the world, the tipping culture is not mandatory, especially in restaurants. However, America is one of the few countries where tipping is a requirement.  

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Image above is from Unsplash.

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