Automatic gratuities guidelines

[rhblake]

18 minutes ago, Stealthdog said:

We only went to the MDR 3 times over the 15 days

 Therefore you probably ate most of the other 42 meals at the buffet? How did you reward (tip) all of those servers, working the buffet?

[NLH Arizona]

28 minutes ago, Stealthdog said:

 It was an interesting experience - you can now do a ship charge directly to a NCL staff member.  Just give their name to the customer service and they can pull up their account number, charge your on board account, and send that charged amount directly to the NCL staff member's account as a credit.

You've been able to do this for years.  

[fshagan]

5 hours ago, Grandpa Elliott said:

That automatic amount can be removed by the customer any time whether or not the customer chooses to leave a tip.

 

No, that is not true (at least in California). Restaurants can impose a non-refundable service charge that you agree to pay for your group of a certain number or more, and that service charge replaces the customary tip (you can always give more if you like directly to an individual, which is treated like a tip).

Quote

What are service charges?

Amounts an employer requires a customer to pay are service charges. This is true even if the employer or employee calls the payment a tip or gratuity.

Examples of service charges commonly added to a customer's check include:

• Large dining party automatic gratuity
• Banquet event fee
• Cruise trip package fee
• Hotel room service charge
• Bottle service charge (nightclubs, restaurants)

Generally, service charges are reported as non-tip wages paid to the employee. Some employers keep a portion of the service charges. Only the amounts distributed to employees are non-tip wages to those employees.
 

From: https://www.irs.gov/newsroom/employer-reminder-reporting-tips-versus-service-charges-key-differences-between-categories-affect-employees-tax-reporting

 

Remember, the IRS rules don't apply to what NCL is doing, but they do apply to the US-based tax law for the difference between a mandatory service charge and a freely given gratuity or tip. Some states may not allow a mandatory service charge, but I know California does.

Edited December 26, 2018 by fshagan

[Stealthdog]

41 minutes ago, rhblake said:

 Therefore you probably ate most of the other 42 meals at the buffet? How did you reward (tip) all of those servers, working the buffet?

 

Did not go to the Buffet once.  Very rarely do we go to the buffet on any cruise line because of all the unsanitary health concerns.  Had breakfast and lunch at Cagneys every day and specialty dining for dinner for all but the three meals we had at the MDR.  We redistributed the tips directly to the breakfast/lunch staff at Cagneys.

[Comi.uy]

1 hour ago, Stealthdog said:

Just got off a 15 day on the Sun.  You absolutely can get a refund for the automatic gratuities while still on the cruise.  Just go to Customer Service near the end of the cruise and they can do it for you.  We only went to the MDR 3 times over the 15 days, so we got the automatic gratuities refunded and then gave that money back to those who served us directly every day (restaurant and cabin staff), plus a little more.  It was an interesting experience - you can now do a ship charge directly to a NCL staff member.  Just give their name to the customer service and they can pull up their account number, charge your on board account, and send that charged amount directly to the NCL staff member's account as a credit.

Nice I wasnt aware that was possible !!

 

52 minutes ago, fshagan said:

 

No, that is not true (at least in California). Restaurants can impose a non-refundable service charge that you agree to pay for your group of a certain number or more, and that service charge replaces the customary tip (you can always give more if you like directly to an individual, which is treated like a tip).

Good thing cruises are not Commiefornia 🤣

[Stealthdog]

35 minutes ago, Grandpa Elliott said:

 

 

No you can't.  You can get the DSC removed but not the auto-gratuities.  The auto-gratuities are charged for the dining and drink packages and are mandatory.

 

My apologies for not being as clear.  But, yes, I wasn't referring to the 20% gratuities added to dining and beverage packages.  I was referring to the automatic daily gratuities ($13+/day). 

 

 

 

[vpearlkc]

Other than the Butler and Concierge, if you are in a suite, everyone on the service side of the ships crew is paid with the service charges. A lot of them you never see or talk to, but believe me the cruise would be a lot less fun without them. No one from even the poorest third world countries would be there if only the minimum base salary was what they made.

[fshagan]

8 hours ago, vpearlkc said:

Other than the Butler and Concierge, if you are in a suite, everyone on the service side of the ships crew is paid with the service charges. A lot of them you never see or talk to, but believe me the cruise would be a lot less fun without them. No one from even the poorest third world countries would be there if only the minimum base salary was what they made.

 

Guaranteed pay is about $600, but the average server earns from $7 to $12 an hour. That's typically 3x what a person from the Philippines can earn at home in a service job. I'm using the Philippines because many of the NCL crew are from the Philippines, and I've watched the YouTube videos of past crew members, and they use the 3 times number. 

 

They do not earn $50 a month plus tips. That's a myth.

[fshagan]

12 hours ago, Grandpa Elliott said:

 

 

Nothing was amended.  You are reading that incorrectly.  It says that employees are compensated by "staff are compensated by a combination of salary and incentive programs that your service charge supports".  The salary is one thing while the incentive program supported by the DSC is another.  In the end it is all just a non-issue anyway.  It is just a chicken little the sky is falling excuse that some people use to justify making a decision that really needs no justification in the first place.

 

You are treating them as independent clauses? Interesting.

"

[Shayhooper]

On 12/22/2018 at 8:14 AM, KateQ22003 said:

If the money is being taken from me, and I am told it is for a specific reason, you are darned right I would ask where my money is going!! Would you be cool going to a restaurant, leaving the waiter a $20 tip, and then finding out that he actually got $10 and the rest he doesn't get because he didn't earn his "incentive"?

Actually, you would be surprised to know that when you tip a server at any random restaurant, they don't actually get all of that tip.  Most places require that they take a portion of that tip and pass some of it on to the bartenders, busboys, and other support staff.  Tips are shared with the people who are not as visible, much like the DSC. 

[GUT2407]

21 minutes ago, Shayhooper said:

Actually, you would be surprised to know that when you tip a server at any random restaurant, they don't actually get all of that tip.  Most places require that they take a portion of that tip and pass some of it on to the bartenders, busboys, and other support staff.  Tips are shared with the people who are not as visible, much like the DSC. 

All the more reason to stop all the tipping madness. People I never see, get money for giving ME good service

[BirdTravels]

9 minutes ago, GUT2407 said:

All the more reason to stop all the tipping madness. People I never see, get money for giving ME good service

Welcome to America and American tradition. 

[Trimone]

2 hours ago, GUT2407 said:

All the more reason to stop all the tipping madness. People I never see, get money for giving ME good service

Here here, it’s stupid, if it is an American tradition why are the ships not registered there? Cost and staff

 

[KateQ22003]

4 hours ago, Shayhooper said:

Actually, you would be surprised to know that when you tip a server at any random restaurant, they don't actually get all of that tip.  Most places require that they take a portion of that tip and pass some of it on to the bartenders, busboys, and other support staff.  Tips are shared with the people who are not as visible, much like the DSC. 

I am well aware of that. That's not the issue here. The issue isn't what staff gets the money, the issue is how much of what they charge for the DSC actually makes its way into the hands of the staff, and how much does NCL put in their coffers. Remember, they aren't calling it a tip, they are calling it a service charge. They can divvy up any or all of it at their discretion, while leading us to believe it is all going to the hard working staff. I would be thrilled to know it goes 100% to the staff that you mentioned. Still waiting for proof that it does.

[gatordad1]

glad to see you can still cancel the automatic grats when on board.