Two of B.C.’s largest restaurant associations are urging WorkSafe BC to immediately pause enforcement of a controversial policy on tipping, claiming it’s putting restaurants in an impossible position.
The British Columbia Restaurant and Foodservices Association and Restaurants Canada say WorkSafe BC’s directive requiring all verifiable gratuities to be included in assessed payroll directly contradicts Canada Revenue Agency rules, which treat credit card tips as direct gratuities that must be paid out in cash and excluded from payroll.
The policy was introduced without warning or consultation, leaving many restaurant owners blindsided when auditors began issuing penalties. These surprise audits are costing restaurants thousands in extra payroll costs—at a time when the industry is already battling inflation, declining customer spending, and record-high bankruptcy rates.
Industry leaders say restaurants are now being forced to choose between two conflicting policies: follow CRA rules and risk WorkSafe BC fines, or comply with WorkSafe BC and break CRA rules.
The associations are calling on WorkSafe BC to suspend audits immediately and work with the industry on a consistent, fair policy. They say the current approach adds red tape, increases financial pressure, and reflects a lack of partnership with a struggling sector.
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