{ "standard": "FactUnion Standard v1", "checkedAt": "2026-10-13T21:22:36.920Z", "title": "The Fee on the Tip", "date": "2026-10-13", "facts": [ { "n": 1, "claim": "As of October 2026, the Illinois Interchange Fee Prohibition Act has not taken effect, and its implementation is delayed until July 1, 2027.", "sources": [ { "url": "https://paymentreview.com/blog/illinois-interchange-fee-law-tax-tips/", "title": "Illinois Interchange Fee Prohibition Act: Status in 2026" }, { "url": "https://pulsecrm.com/blog/illinois-interchange-fee-prohibition-act-who-is-still-covered/", "title": "Illinois Pushed Its Interchange-on-Tax-and-Tips Law to July 2027, and a Federal Court Has Enjoined It for Most of the Industry. Here Is Who Is Still Inside It. — Pulse" }, { "url": "https://www.rockfuscoconnelly.com/12410-2/", "title": "Illinois Swipe Fee Law Delayed and Partially Blocked Amid Ongoing Legal Challenges" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 2, "claim": "On September 22, 2026, U.S. District Judge Virginia Kendall extended the permanent injunction against the Illinois law to federal credit unions.", "sources": [ { "url": "https://bankingjournal.aba.com/2026/09/court-exempts-federal-credit-unions-from-illinois-interchange-law/", "title": "Court exempts federal credit unions from Illinois interchange law | ABA Banking Journal" }, { "url": "https://www.thewbkfirm.com/wp-content/uploads/IL-interchange-fee-injunction-credit-unions.pdf", "title": "No. 24 C 7307 Chief Judge Virginia M. Kendall" }, { "url": "https://infobytes.orrick.com/2026-09-25/court-extends-permanent-injunction-against-illinois-interchange-fee-ban-to-federal-credit-unions-following-ncua-rule/", "title": "Court extends permanent injunction against Illinois interchange fee ban to federal credit unions following NCUA rule" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 3, "claim": "The injunction now protects national banks, federal savings associations, federal credit unions, out-of-state state-chartered banks and payment card networks, leaving the law applicable only to state-chartered credit unions and Illinois-chartered institutions.", "sources": [ { "url": "https://thecudaily.com/judge-permanently-bars-illinois-from-restricting-interchange-fees-at-fed-charters-state-charters-remain-under-law/", "title": "Judge Permanently Bars Illinois From Restricting Interchange Fees at Fed Charters; State Charters Remain Under Law - Credit Union Daily" }, { "url": "https://bankingjournal.aba.com/2026/09/judge-kendall-extends-ifpa-permanent-injunction-to-federal-credit-unions/", "title": "Judge Kendall extends IFPA permanent injunction to federal credit unions | ABA Banking Journal" }, { "url": "https://www.thewbkfirm.com/wp-content/uploads/IL-interchange-fee-injunction-credit-unions.pdf", "title": "No. 24 C 7307 Chief Judge Virginia M. Kendall" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 4, "claim": "NACS reported on October 12, 2026 that Illinois Attorney General Kwame Raoul has filed an appeal to protect the state law limiting swipe fees.", "sources": [ { "url": "https://convenience.org/stay-current/news/2026/october/12/illinois-attorney-general-files-appeal-to-protect-state-law-limiting-swipe-fees", "title": "Illinois Attorney General Files Appeal to Protect State Law Limiting Swipe Fees | NACS" }, { "url": "https://news.bloomberglaw.com/daily-tax-report/illinois-to-appeal-order-blocking-state-swipe-fee-restrictions", "title": "Illinois to Appeal Order Blocking State ‘Swipe Fee’ Restrictions" }, { "url": "https://pcmala.org/illinois-attorney-general-files-appeal-to-protect-state-law-limiting-swipe-fees/", "title": "Illinois Attorney General Files Appeal to Protect State Law Limiting Swipe Fees – Petroleum & Convenience Marketers of Alabama" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 5, "claim": "The plaintiffs suing Attorney General Raoul over the Illinois law are the Illinois Bankers Association, the American Bankers Association, America's Credit Unions and the Illinois Credit Union League.", "sources": [ { "url": "https://dockets.justia.com/docket/illinois/ilndce/1:2024cv07307/463030", "title": "Illinois Bankers Association et al v. Raoul\n 1:2024cv07307 | U.S. District Court for the Northern District of Illinois | Justia" }, { "url": "https://storage.courtlistener.com/recap/gov.uscourts.ilnd.463030/gov.uscourts.ilnd.463030.115.0.pdf", "title": "THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION ILLINOIS BANKERS ASSOCIATION et al." }, { "url": "https://syfert.com/federal/district/cases/cl-10328913/illinois-bankers-association-v-raoul", "title": "Illinois Bankers Ass'n v. Raoul (N.D. Ill. 2025). · Go Syfert" } ], "verdict": "corrected", "note": "Source corrected: the page first cited does not state this; the sources listed do.", "quote": false, "usedInEpisode": true }, { "n": 6, "claim": "The Illinois Retail Merchants Association pushed the Interchange Fee Prohibition Act, passed in the final days of the May 2024 legislative session, to offset a cap on the discount retailers receive for collecting sales tax.", "sources": [ { "url": "https://news.wttw.com/2024/10/30/illinois-landmark-law-limiting-credit-card-fees-put-legal-test", "title": "Illinois' Landmark Law Limiting Credit Card Fees Put to Legal Test | WTTW" }, { "url": "https://www.digitaltransactions.net/a-fight-over-an-illinois-interchange-prohibition-law-is-far-from-over/", "title": "A Fight Over an Illinois Interchange Prohibition Law Is Far From Over – Digital Transactions" }, { "url": "https://www.americanbanker.com/news/illinois-passes-one-of-a-kind-swipe-fee-restrictions", "title": "Illinois passes one-of-a-kind swipe fee restrictions | American Banker" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 7, "claim": "In a December 20, 2024 opinion, Judge Kendall granted the bankers' motion for a preliminary injunction against the Illinois law in part.", "sources": [ { "url": "https://www.aba.com/-/media/documents/case-documents/2024-12-20-illinois-bankers-association-v-kwame-raoul-opinion.pdf", "title": "Illinois Bankers Association v. Kwame Raoul, Memorandum Opinion and Order" }, { "url": "https://storage.courtlistener.com/recap/gov.uscourts.ilnd.463030/gov.uscourts.ilnd.463030.104.0_1.pdf", "title": "MEMORANDUM OPINION AND ORDER Pending before the Court is Plaintiff Illinois Bankers Association’s et al. (“Illinois Bankers”) motion for pre-enforcement injunctive relief from the Illinois Interchange Fee Prohibition Act (the “IFPA”) slated to take effect on July 1, 2025. (Dkt. 15); 815 ILCS 151/150-1 seq. Illinois Bankers—trade associations representing financial institutions and other participants in electronic payment transactions—claim that the state statute is preempted by various federal laws. Defendant Illinois Attorney General Kwame Raoul, acting in his official capacity, opposes the preliminary injunction, requests the Court deny Illinois Bankers’s motion in its entirety, and moves to dismiss the complaint. (Dkt. 76). For the following reasons, Illinois Bankers Association’s preliminary injunction [15] is granted in part. The State’s motion to dismiss [75] is also granted in part." }, { "url": "https://law.justia.com/cases/federal/district-courts/illinois/ilndce/1:2024cv07307/463030/104/", "title": "Illinois Bankers Association et al v. Raoul, No. 1:2024cv07307 - Document 104 (N.D. Ill. 2024) :: Justia" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 8, "claim": "Analysts in September 2026 advised Illinois merchants not to budget for savings or buy compliance products, because the law's reach depends on charter-type distinctions that current payment infrastructure is not designed to handle.", "sources": [ { "url": "https://paymentreview.com/blog/illinois-interchange-fee-law-tax-tips/", "title": "Illinois Interchange Fee Prohibition Act: Status in 2026" }, { "url": "https://pulsecrm.com/blog/illinois-interchange-fee-prohibition-act-who-is-still-covered/", "title": "Illinois Pushed Its Interchange-on-Tax-and-Tips Law to July 2027, and a Federal Court Has Enjoined It for Most of the Industry. Here Is Who Is Still Inside It. — Pulse" }, { "url": "https://cei.org/studies/the-hidden-costs-of-interchange-fee-bans/", "title": "The Hidden Costs of Interchange Fee Bans - Competitive Enterprise Institute" } ], "verdict": "corrected", "note": "Source corrected: the page first cited does not state this; the sources listed do.", "quote": false, "usedInEpisode": true }, { "n": 9, "claim": "Visa and Mastercard calculate interchange, network assessments and processor markups on the full captured total, including the gratuity, with no carve-out for tips.", "sources": [ { "url": "https://www.mypayadvisor.com/insights/tipping-fees-on-pos-systems", "title": "Tipping Fees on POS Systems: 2026 Operator Guide | myPayAdvisor" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 10, "claim": "For U.S. merchants in restaurant categories MCC 5811, 5812 and 5814, Visa's tip tolerance is 30 percent above the authorized amount as of February 21, 2026.", "sources": [ { "url": "https://celermerchants.com/blog/full-service-restaurant-payments/", "title": "Full-Service Restaurant Payments: Tabs and Tips" }, { "url": "https://celermerchants.com/blog/tip-adjustment-restaurants/", "title": "Tip Adjustment in Restaurants: The Rules That Apply" }, { "url": "https://celermerchants.com/blog/restaurant-processing-guide/", "title": "Restaurant Payment Processing: The Complete Cost Guide" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 11, "claim": "Exceeding the tip tolerance without an incremental authorization can downgrade a transaction, typically adding 0.30 to 0.50 percent in costs.", "sources": [ { "url": "https://www.mypayadvisor.com/insights/tipping-fees-on-pos-systems", "title": "Tipping Fees on POS Systems: 2026 Operator Guide | myPayAdvisor" }, { "url": "https://celermerchants.com/blog/full-service-restaurant-payments/", "title": "Full-Service Restaurant Payments: Tabs and Tips" }, { "url": "https://www.paymentprocessingguide.com/tools/interchange-downgrade-calculator", "title": "Interchange Downgrade Cost Calculator | Calculate Fees | Payment Processor Guide" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 12, "claim": "According to the cited chart, hair salons (MCC 7230) have a Mastercard tip tolerance of 25 percent but a Visa tolerance of 0 percent, so Visa transactions adjusted for a tip after authorization downgrade to a non-qualified rate.", "sources": [ { "url": "https://www.merchant-account-services.org/blog/tip-adjustments/", "title": "Tip Adjustments - Merchant Account Services" } ], "verdict": "corrected", "note": "The claim says salons have no standard tolerance, but the source gives Mastercard a 25 percent tolerance for MCC 7230 and gives only Visa 0 percent.", "quote": false, "usedInEpisode": true }, { "n": 13, "claim": "The Electronic Payments Coalition estimated that Illinois merchants would save $118 million a year in interchange fees under the law, in a 2024 report arguing the law creates a windfall for the largest retailers.", "sources": [ { "url": "https://electronicpaymentscoalition.org/wp-content/uploads/2024/10/Illinois-State-Sales-Tax-Interchange-Report-9.24.24-1.pdf", "title": "New Illinois Law Creates Windfall for Largest (EPC)" }, { "url": "https://www.digitaltransactions.net/who-will-benefit-most-becomes-the-latest-flash-point-in-the-battle-over-the-illinois-interchange-law/", "title": "Who Will Benefit Most Becomes the Latest Flash Point in the Battle Over the Illinois Interchange Law – Digital Transactions" }, { "url": "https://guardyourcard.com/wp-content/uploads/2024/10/Illinois-State-Sales-Tax-Interchange-Report-9.24.24.pdf", "title": "New Illinois Law Creates Windfall for Largest Corporate Mega-Stores" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 14, "claim": "A Common Sense Institute analysis estimated that Colorado merchants paid about $110.5 million in interchange fees on sales tax and tips combined in 2023.", "sources": [ { "url": "https://archive.commonsenseinstituteus.org/colorado/research/taxes-and-fees/the-economic-impact-of-state-restrictions-on-interchange-fees", "title": "The Economic Impact of State Restrictions on Interchange Fees - Common Sense Institute" }, { "url": "https://commonsenseinstituteus.org/research/the-economic-impact-of-state-restrictions-on-interchange-fees/", "title": "The Economic Impact of State Restrictions on Interchange Fees – Common Sense Institute" }, { "url": "https://commonsenseinstituteus.org/wp-content/uploads/2025/02/CSI-Report-US-Interchange-Fees-2.pdf", "title": "THE ECONOMIC IMPACT OF" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 15, "claim": "ICLE's October 2026 brief argues that the proposed Visa-Mastercard antitrust settlement would reduce interchange fees nationwide and shrink the savings from state carve-outs for taxes and tips, making those carve-outs redundant and more harmful.", "sources": [ { "url": "https://laweconcenter.org/visa-mastercard-settlement-benefits-merchants-makes-state-swipe-fee-carveouts-more-harmful-icle-finds/", "title": "Visa-Mastercard Settlement Benefits Merchants, Makes State Swipe-Fee Carveouts more harmful, ICLE Finds" }, { "url": "https://laweconcenter.org/wp-content/uploads/2026/10/ICLE-MDL-Settlement-State-IF-Reg-brief.pdf", "title": "Carveouts at Checkout: Small Savings, Large Costs, and the Payment-Card Settlement" } ], "verdict": "corrected", "note": "The settlement is only proposed and has preliminary approval, so ICLE says it would provide fee relief, not that it already does.", "quote": false, "usedInEpisode": true }, { "n": 16, "claim": "CEI's written testimony urges rejection of Massachusetts Bill S.688, a state bill that would prohibit interchange fees on the sales tax and gratuity portions of card transactions, arguing it would primarily benefit the largest retailers.", "sources": [ { "url": "https://cei.org/wp-content/uploads/2026/07/CEI-Written-Testimony-on-S688.pdf", "title": "CEI Written Testimony on S.688" }, { "url": "https://cei.org/regulatory_comments/cei-comments-on-massachusetts-act-prohibiting-card-interchange-fees/", "title": "CEI Comments on Massachusetts act prohibiting card interchange fees - Competitive Enterprise Institute" }, { "url": "https://cei.org/wp-content/uploads/2026/07/CEI-Written-Testimony-on-Massachusetts-Bill-S688.pdf", "title": "An Act Prohibiting Card Interchange Fees on Tax and Gratuity (S. 688)" } ], "verdict": "corrected", "note": "S.688 is a Massachusetts state bill, not a federal bill.", "quote": false, "usedInEpisode": true }, { "n": 17, "claim": "CEI argues that after the Durbin debit cap, banks offset lost revenue by sharply reducing the availability of free checking (from about 60 percent to about 20 percent of covered banks), nearly doubling monthly fees and tripling minimum balance thresholds, while most consumers did not see merchant savings passed on to them.", "sources": [ { "url": "https://cei.org/studies/the-hidden-costs-of-interchange-fee-bans/", "title": "The Hidden Costs of Interchange Fee Bans - Competitive Enterprise Institute" }, { "url": "https://www.law.nyu.edu/sites/default/files/Mukharlyamov_Sarin_2.4.2019_0.pdf", "title": "The Impact of the Durbin Amendment on" }, { "url": "https://cei.org/blog/lets-resolve-to-repeal-durbins-debit-card-interchange-price-controls-in-2026/", "title": "Let’s resolve to repeal Durbin’s debit card interchange price controls in 2026 - Competitive Enterprise Institute" } ], "verdict": "corrected", "note": "The CEI page says banks reduced the availability of free checking rather than eliminating it; the rest of the claim matches.", "quote": false, "usedInEpisode": true }, { "n": 18, "claim": "Under the federal FLSA, an employer may deduct a card processing fee from credit-card tips only up to the actual fee the card company charged, may use a blended or average figure only if it does not exceed that actual charge, and may not cut pay below minimum wage.", "sources": [ { "url": "https://paymentreview.com/blog/credit-card-fees-deducted-from-tips/", "title": "Can employers deduct credit card fees from tips? Rules by state" }, { "url": "https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa", "title": "Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA) | U.S. Department of Labor" }, { "url": "https://www.dol.gov/sites/dolgov/files/WHD/flsa/tips_final-rule.pdf", "title": "DEPARTMENT OF LABOR Wage and Hour Division 29 CFR Parts 10, 516, 531, 578, 579, and 580 RIN 1235-AA21 Tip Regulations under the Fair Labor Standards Act (FLSA) AGENCY: Wage and Hour Division, Department of Labor. ACTION: Final Rule. SUMMARY: In the Consolidated Appropriations Act of 2018 (CAA), Congress amended section 3(m) of the Fair Labor Standards Act (FLSA) to prohibit employers from keeping tips received by their employees, regardless of whether the employers take a tip credit under section 3(m). In this final rule, the Department of Labor (Department) amends its tip regulations to address these amendments. The final rule also codifies the Department’s guidance regarding the tip credit’s application to employees who perform tipped and non-tipped duties. DATES: This final rule is effective [INSERT DATE 60 DAYS AFTER DATE OF PUBLICATION]. FOR FURTHER INFORMATION CONTACT: Amy DeBisschop, Director of the Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Avenue NW, Washington, DC 20210, telephone: (202) 693-0406 (this is not a toll-free number). Copies of this final rule may be obtained in alternative formats (Large Print, Braille, Audio Tape, or Disc), upon request, by calling (202) 693-0675 (this is not a toll-free number). TTY/TDD callers may" } ], "verdict": "corrected", "note": "Federal guidance does not ban rounded or estimated figures outright; it allows a blended or average figure as long as it does not exceed the actual charge.", "quote": false, "usedInEpisode": true }, { "n": 19, "claim": "As of October 2026, California, Delaware, Maine, Massachusetts, Minnesota and New Jersey prohibit employers from deducting card processing fees from employee tips, while Illinois, New York and Washington permit a proportional deduction.", "sources": [ { "url": "https://paymentreview.com/blog/credit-card-fees-deducted-from-tips/", "title": "Can employers deduct credit card fees from tips? Rules by state" }, { "url": "https://server44.app/blog/credit-card-processing-fees-deducted-from-tips/", "title": "Can Employers Deduct Credit Card Fees From Tips? — Server44" }, { "url": "https://misekit.com/en/tip-pooling-laws", "title": "Tip Pooling Laws by State (2026): Tip Credit and Who Can Share" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 20, "claim": "Law firm Clark Hill notes that Pennsylvania also prohibits deducting credit card costs from employee tips.", "sources": [ { "url": "https://www.clarkhill.com/news-events/news/can-an-employer-deduct-credit-card-costs-from-employee-tips/", "title": "Can an Employer Deduct Credit Card Costs from Employee Tips? | Clark Hill PLC" }, { "url": "https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/labor-law/overtime-and-tipped-worker-rules-in-pa", "title": "Overtime and Tipped Worker Rules in PA | Department of Labor and Industry | Commonwealth of Pennsylvania" }, { "url": "https://www.law.cornell.edu/regulations/pennsylvania/34-Pa-Code-SS-231-113", "title": "34 Pa. Code § 231.113 - Credit card and other processing fees | State Regulations | US Law | LII / Legal Information Institute" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 21, "claim": "The One Big Beautiful Bill Act gives a federal income tax deduction for qualified tips in customarily tipped occupations from 2025 through 2028, capped at $25,000 a year.", "sources": [ { "url": "https://rsmus.com/insights/tax-alerts/2026/no-tax-tips-final-rules-confirm-qualifying-occupations-tip-definition.html", "title": "No tax on tips: Final rules confirm qualifying occupations and tip definition | RSM US" }, { "url": "https://natlawreview.com/article/new-law-updates-tip-and-overtime-deductions-employees", "title": "Answering Tax and Tip Questions About the One Big Beautiful Bill" }, { "url": "https://www.lexology.com/library/detail.aspx?g=b59c0243-fff3-47f9-9163-1d017b99ec85", "title": "A Primer for Employers on OBBBA’s No Tax on Tips Law - Lexology" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 22, "claim": "On April 10, 2026, Treasury and the IRS issued final regulations listing more than 70 occupations eligible for the tips deduction, including barbers, hair stylists, nail technicians and baristas.", "sources": [ { "url": "https://www.irs.gov/newsroom/treasury-irs-issue-final-regulations-listing-occupations-where-workers-customarily-and-regularly-receive-tips-under-the-one-big-beautiful-bill", "title": "Treasury, IRS issue final regulations listing occupations | IRS" }, { "url": "https://content.govdelivery.com/accounts/USIRS/bulletins/4125e47", "title": "IR-2026-49: Treasury, IRS issue final regulations listing occupations where workers customarily and regularly receive tips under the One, Big, Beautiful Bill" }, { "url": "https://www.cpapracticeadvisor.com/2026/04/10/irs-issues-final-regs-on-occupations-eligible-for-obbba-tips-deduction/181462/", "title": "IRS Issues Final Regs on Occupations Eligible for OBBBA Tips Deduction - CPA Practice Advisor" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 23, "claim": "Under the final rules, a point-of-sale system must offer a zero-tip option for a tip to be qualified; if the system forces a minimum tip, only the amount above that minimum qualifies.", "sources": [ { "url": "https://rsmus.com/insights/tax-alerts/2026/no-tax-tips-final-rules-confirm-qualifying-occupations-tip-definition.html", "title": "No tax on tips: Final rules confirm qualifying occupations and tip definition | RSM US" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 24, "claim": "Self-employed booth renters can claim the tips deduction, but it is limited to their business's net income and does not reduce self-employment tax.", "sources": [ { "url": "https://www.taxpenaltytool.com/refund-checkup/hair-stylists/", "title": "Tip Tax Deduction for Hair Stylists & Barbers: W-2 and Booth Renters | TaxPenaltyTool" }, { "url": "https://gocodebook.com/library/us/federal/us-irs-i1040gi/part-ii", "title": "Part II — Instruction 1040 — Instructions for Form" }, { "url": "https://taxsharkinc.com/does-no-tax-on-tips-lower-my-self-employment-tax-w-examples-faqs/", "title": "Does No Tax on Tips Lower My Self-Employment Tax? (w/Examples) + FAQs" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 25, "claim": "A 2026 ChairHold report estimates that about 71% of licensed U.S. cosmetologists, barbers and nail techs worked as booth renters or independent contractors in 2026, up from about 58% in 2019, as salon suite locations grew from about 9,000 to 15,000.", "sources": [ { "url": "https://chairhold.com/blog/2026-state-of-solo-beauty-business-numbers/", "title": "2026 state of the solo beauty business | ChairHold" } ], "verdict": "corrected", "note": "ChairHold calls these figures estimates it built from license data, salon suite operator reports and survey responses, so they are not the results of an industry survey. The numbers themselves match.", "quote": false, "usedInEpisode": true }, { "n": 26, "claim": "The National Restaurant Association reports that restaurant total expenses rose 36% since 2019, and a 2026 analysis of its data notes that 42% of operators were unprofitable in 2025.", "sources": [ { "url": "https://www.restaurant.org/research-and-media/research/restaurant-economic-insights/analysis-commentary/elevated-costs-continue-to-pressure-restaurant-profitability/", "title": "Elevated costs continue to pressure restaurant profitability | National Restaurant Association" }, { "url": "https://www.restaurantnewsresource.com/total-restaurant-expenses-jumped-36-since-before-the-pandemic", "title": "Total Restaurant Expenses Jumped 36% Since Before the Pandemic - Restaurant News Resource" }, { "url": "https://www.emarketer.com/content/restaurant-economics-squeeze-chains-even-consumers-keep-dining", "title": "Restaurant economics squeeze chains even as consumers keep dining out" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 27, "claim": "Between 1909 and 1915, six states (Washington, Arkansas, Iowa, Mississippi, South Carolina and Tennessee) passed laws against giving or soliciting tips, and all were repealed or struck down by 1926.", "sources": [ { "url": "https://www.richmondfed.org/-/media/RichmondFedOrg/publications/research/econ_focus/2024/q1-q2/economic_history.pdf", "title": "Tipping: From Scourge of Democracy to American Ritual | Richmond Fed" }, { "url": "https://law.stackexchange.com/questions/31784/what-happened-to-the-anti-tipping-laws", "title": "What happened to the anti-tipping laws?" }, { "url": "https://history.stackexchange.com/questions/41328/us-legislative-efforts-to-abolish-tipping", "title": "US legislative efforts to abolish tipping" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 28, "claim": "Washington's anti-tipping law, the first in the nation, took effect at midnight on June 8, 1909.", "sources": [ { "url": "https://www.historylink.org/File/22487", "title": "Anti-tipping law, first in the nation, takes effect in Washington state at midnight on June 8, 1909 | HistoryLink" }, { "url": "https://www.lawyersgunsmoneyblog.com/2025/06/this-day-in-labor-history-june-8-1909", "title": "This Day in Labor History: June 8, 1909 - Lawyers, Guns & Money" }, { "url": "https://leg.wa.gov/CodeReviser/documents/sessionlaw/1909pam1.pdf", "title": "STATE OF WASHINGTON~" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 29, "claim": "In his 1916 book The Itching Palm, William R. Scott argued that tipping allowed employers to pay substandard wages by shifting labor costs to customers.", "sources": [ { "url": "https://www.gutenberg.org/files/33170/33170-h/33170-h.htm", "title": "The Itching Palm, by William R. Scott | Project Gutenberg" }, { "url": "https://www.gutenberg.org/cache/epub/33170/pg33170-images.html", "title": "The Project Gutenberg eBook of The Itching Palm, by William R. Scott" } ], "verdict": "verified", "quote": false, "usedInEpisode": true }, { "n": 30, "claim": "In Dunahoo v. Huber (1919), the Iowa Supreme Court struck down the state's anti-tipping law in a case brought by Sioux City barber T.J. Donahoo, who had been arrested after accepting a 25-cent tip, ruling that the law arbitrarily barred employees but not business owners from taking tips.", "sources": [ { "url": "https://www.investigatemidwest.org/when-tipping-was-illegal-in-iowa-and-how-a-u-s-president-broke-that-law/", "title": "When Tipping Was Illegal in Iowa, And How A U.S. President Broke That Law | Investigate Midwest" }, { "url": "https://hallapproved.com/ia/cases/supreme/1919/7206614/", "title": "Dunahoo v. Huber, 185 Iowa 753 (Iowa 1919) | HallApproved.com" }, { "url": "https://case-law.vlex.com/vid/dunahoo-v-huber-31536-907049904", "title": "Dunahoo v. Huber (Dunahoo v. Huber, 185 Iowa 753, 171 N.W. 123 (Iowa 1919)) - vLex United States" } ], "verdict": "verified", "quote": false, "usedInEpisode": true } ], "removed": [], "audioCheck": { "lines": 176, "matched": 176 }, "corrections": [] }