Service Charge (RA 11360; DO 242, s. 2024)

This topic has no further subtopics. Explore its practice questions below.

1. Under RA11360, what happens to service charges collected by covered establishments?
2. Under DO242-2024, on what basis is complete and equal service-charge distribution made among covered employees?
3. What is the maximum stated interval for the twice-monthly distribution under DO242?
4. A wage order increases the applicable minimum wage. A hotel says employees’ service-charge shares can count toward sati…
5. A covered establishment excludes an otherwise covered nonmanagerial employee solely because the worker is contractual r…
6. A restaurant collects service charges and proposes to retain fifteen percent for management, distribute the balance onl…
7. For a distribution period, the only covered employees are Ana and Ben. Ana renders eighty actual hours and Ben forty; n…
8. Explain the current rule on distribution and managerial exclusion under RA11360 and DO242.
9. Can an establishment use service-charge shares to satisfy an increase in the applicable minimum wage? Explain.
10. Explain why equal distribution under DO242 need not mean identical totals when covered employees render different actua…
11. Under DO 242, what defines the relevant service charge?
12. Does DO 242’s illustrative similar-establishment list include sports clubs collecting the relevant service charges?