There he is, the ebullient loudmouth, Bill O’Reilly, just looking out for the folks …
It appears that the spin doesn’t stop in O’Reilly Factor’s No Spin Zone …
I was much surprised when O’Reilly did a segment on a moderately upscale Los Angeles French restaurant that added a 3% surcharge to the bill under the guise of paying for employee healthcare. The surprise was that O’Reilly didn’t appear to call out the two co-owners, Bill Chait and Walter Manzke, on what appears to be a tax avoidance scheme rather than the mitigation of healthcare costs due to Obamacare.
Bill Chait, restaurant co-owner: “Well the real genesis was... in California we have a very restrictive gratuity system. And none of the gratuity can actually be shared with the kitchen. This was actually the genesis of this was really a way to basically give something to the kitchen to show appreciation for their service staff.”
Walter Manzke, restaurant co-owner: “It’s a way of taking a portion of the gratuity and dispersing it to the kitchen.”
This was further confirmed in a Los Angeles Times Article …
But the bigger motivator, the owners said, was the income inequality that exists in restaurants.
"I think when people leave a tip, whether it's a dollar or whatever, they have no idea where the money goes," Manzke said. In a tip pool system like the one at Republique, the tips are divvied up by waiters, busboys and others who provide table service. But Chait — owner of several restaurants — said management, and the invisible employees who make up half a restaurant's total staff, are prohibited by state law from dipping into the tip jar.
Bottom line …
What you have here is a minor public relations coup. Free airtime on a national cable news show with the largest audience in all of cable television news by a restaurant piggybacking on the Obamacare news and a ruse – a way to manipulate California taxes. It appears that management has found a way to keep their employee costs down by simply spreading tip revenue to a larger number of workers who would normally be restricted from sharing in tip income.
A question for Bill O’Reilly, what :no spin zone?
"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius