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September 13, 2021

Tips on Credit or Debit Cards

Most consumer transactions today are electronic. According to North Carolina administrative code, if a customer pays by credit, charge, or debit card and includes a tip for an employee, the tip accrues to the employee at the time of the charge. The employer must pay the employee the charged tip no later than the end of the pay period in which the customer signs the charge. In addition, employers may retain from the tips an amount up to or equal to a percentage of the fee charged by the card issuing company attributable to the tips.

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