Outrage as restaurant adds secret 'living wage fee' to bill: 'Can’t pay the staff, don’t do business'

NEW YORK CITY, NEW YORK: Dining at a fine restaurant has become a task in and of itself, not just for your taste buds, but for your wallet too, with a mountain of hidden charges piling up before you’ve even had a chance to finish your meal.

On top of that, a restaurant took the internet by storm by adding a “living wage fee” to their bills to manage their staff’s payroll, according to the NY Post.

The ‘living wage fee’ drama

The ‘living wage fee’ came into the public eye after a disgruntled patron took to their Instagram Thread to share a receipt from a recent trip to a restaurant that charged its guests the mandatory fee.

The viral image showed the bill for an order of a sandwich, a burger, and fries, along with a "living wage fee" of 18 per cent, amounting to $5.94.

Under the total amount, the restaurant, whose name has not been revealed, explained what the "living wage fee" is.

"Living Wage Fee of 18 per cent added to each dine-in check. This fee goes directly to the staff payroll and provides a living wage to our team. If you choose to tip, tips are pooled amongst the entire team,” the note at the end of the receipt read.

What is 'living wage fee'?

Some small, family-owned restaurants may be able to stay afloat and sustain their employees by adding levies such as living wage fee, especially in the midst of rising cost of living.

For example, the FAQ regarding the living wage fee at Restaurant Lula & Sadie explained that it is how they plan to address the disparity between tipped and non-tipped personnel.

They want “to bridge this gap in order to provide a more sustainable livelihood to our hardworking employees.”

The way restaurants label these fees differs wildly, with some referring to them as an “administrative fee” or “service charge.”

Local laws regarding tipping and restaurant charges vary widely, but according to New York City Consumer and Worker Protection regulations, “restaurants cannot charge a surcharge or other fee in addition to listed food or beverage prices,” but they can “charge a bona fide service charge, but only if the charge is conspicuously disclosed to consumers before food is ordered.”

Internet fumes over ‘living wage fee’

The receipt quickly spread like wildfire, with many internet users slamming the existence of the fee.

“1-star review worthy, every single time,” one user said. “$17 for a burger and fries, and they’re still unable to pay their employees a livable wage?” the second user asked on Reddit.

“That's just the restaurant doubling down on the "You're going to pay my employees salary whether you want to or not". The entire food service industry needs to just be left alone to die. Where's all they typical "iF yOu cAnT aFfOrD tO pAy yOuR wOrKeRs a lIvInG wAgE, yOu sHoUlDnT bE iN buSsInEsS aNyWaYs" people at when it comes to this s””t?” the third user fumed.

“Eating at a restaurant has never been a less attractive proposition than in 2025,” the fourth user chimed in.

"Guess this is America. The business owner should be embarrassed to even have that on the bill. If they can’t pay the staff, don’t do business. Your business skills are clearly not good enough to pay the workers sufficiently,” the fifth user slammed the unnamed restaurant.

“It's deceptive and passive-aggressive. The employer wants you to blame the worker for the prices,” the sixth user suggested.

“US loves to strip the price out of everything. Taxes, surcharges, mandatory tips, you name it. So you think you're paying X and getting slapped with XYZABC,” one more said.

“If a restaurant ever puts that garbage on one of my checks, they can expect to never see me there again. Say no to junk fees,” another one commented.

This article contains remarks made on the Internet by individual people and organizations. MEAWW cannot confirm them independently and does not support claims or opinions being made online