That is not "eliminating tipping" -- that is implementing a mandatory 20% tip. Thanks for catapulting the propaganda.

Aargh - just raise the effing menu prices to cover your costs! The 20% surcharge feels no different than an automatic gratuity, and that is so off-putting to me (despite generally being a 20+ % tipper for even the most basic service) that I just avoid the restaurants that do this. This surcharge BS is just a typical Seattle passive-agressive way to deal with the changing economy of the restaurant business.

@2: Yeah, but you can't hide a 20% price increase in the fine print. People expect to pay dirt cheap prices for food, and I would not be surprised if an automatic 20% gratuity goes over better with consumers than a 20% price increase, despite being fundamentally the same thing.

Tips go to the employees, this goes directly to the owner. Who then uses a small portion of it to cover increased labor costs.

I would like to know if the price listed on the menu includes the 20% surcharge or if the bill is totaled and then increased by 20%.. I seem to be the latter but if that is the case I would certainly hope that it is more plainly stated. By looking at the menu page shown in the article's picture this could be easily overlooked; it seems like technical fine-print.

Does this allow them to skirt the 9th U.S. Circuit Court of Appeals decision on tip sharing?

@3 - the restaurants that seem to be embracing the service-charge-in-lieu-of-tipping aren't what I'd call "dirt cheap" to begin with, so I don't see that as an issue. I see why they are reluctant to make their food prices even higher, but this just comes across as dishonest.

@3 - at most restaurants, labor makes up a third or more of the budget, and benefits are actually not cheap, so I seriously doubt they are pocketing most of it.

@7 - Yes. This is not a tip, its a service charge. Under the law, the restaurant can do whatever they like with a service charge, including not passing it on to employees.

@1 is right, and 20% is enshrining tip inflation.

15% was standard until the plight of restaurant employee's absurd minimum wages ($2.13/hr federal) became well known, and everyone felt collectively responsible for righting that wrong. 20% used to be what you tipped for great service.

@all - cant we just ask the server and/or manager at the restaurant 'hey, what happens to the service charge? is it split? are they treating the employees fairly?'

even before this $15 hub-bub there were always bad restaurants or mangers who stole tips. I know - I worked for a couple.

no need to speculate or ruminate in PA angst - just ask - use words!

@8 more dishonest than leaning on patrons to pay your employees using an arbitrary (and optional) custom?

"they are obligated to disclose on menus or receipts what percentage of a service charge goes to workers"

The employees can sue if the restaurant discloses incompletely or inaccurately, but they have to sue. Any public minded labor lawyers want free publicity by helping?