Vancouver, May 22, 2025 (GLOBE NEWSWIRE) — Both the British Columbia Restaurant and Foodservices Association (BCRFA) and Restaurants Canada are calling for WorkSafe BC to pause enforcement of their confusing and punitive all verifiable gratuities as assessed payroll policy directive that conflicts with Canada Revenue Agency (CRA) rules on direct versus controlled gratuities. WorkSafe BC must undertake a consultation to find an alternative policy solution.
The policy directive was quietly implemented by WorkSafe BC without any consultation or notice given to industry and has surprised restaurants who have been audited by WorkSafe BC. These audits often result in surcharges and penalties, forcing restaurants to choose between complying with conflicting gratuity definitions of direct versus controlled gratuities between the Canada Revenue Agency and WorkSafe BC. For over a year both organizations have been meeting with WorkSafe BC urging for the policy to be paused and reassessed.
“There has been no notice to the industry, no training, and no orientation” said Ian Tostenson, President and CEO of BCRFA. “Restaurants are being audited and fined for an unfair confusing WorkSafe BC gratuity policy directive they were not even unaware of. This is unfair-and reckless”.
“Restaurants are between a rock and a hard place on gratuity policies” said Mark von Schellwitz, Vice President Western Canada for Restaurants Canada. “They need to either comply with federal CRA direct gratuity rules where credit card gratuities are to be paid out in cash at the end of every shift and not be included in employer payroll records or comply with WorkSafe BC’s gratuity policy that requires employers to record all verifiable gratuities as controlled gratuities and include them in assessed payroll. This puts restaurants into an impossible position of determining which contradictory gratuity policy to comply with.”
Enforcement of WorkSafe BC’s relatively unknown gratuity policy is resulting in additional red tape and costing audited restaurants thousands in additional payroll costs at a time when the hospitality industry is already suffering. In 2024 restaurant bankruptcies hit record levels and more than half of BC’s restaurants are unprofitable as they contend with large inflationary operating cost increases, declining consumer spending and labour shortages.
BCRFA and Restaurants Canada are jointly calling for:
- An immediate halt to audits and enforcement action on WorkSafe BC’s gratuity policy.
- A commitment from WorkSafe BC to conduct a full consultation with industry stakeholders to come up with a policy solution that does not contradict CRA tipping policies and does not add unnecessary red tape and labour costs.
“We are calling on WorkSafe BC to work with the hospitality industry as partners to reset their gratuity policies to make them consistent, fair and workable, for all employers with employees that earn gratuities”, added both Tostenson and von Schellwitz.
About Restaurants Canada
Restaurants Canada is a national, not-for-profit association advancing Canada’s diverse and dynamic foodservice industry. Restaurants are a $120 billion industry employing nearly 1.2 million Canadians and is the number one source of first-time jobs in Canada.
About BCRFA
The BCRFA is the largest and most progressive industry organization in British Columbia. We are a collective group of restaurant professionals devoted to the sole purpose of creating the most favourable business environment for our members.
CONTACT: Mark Von Schellwitz Restaurants Canada 604-809-5719 mark@restaurantscanada.org Ian Tostenson BC Restaurant & Foodservices Association 604-986-1429 itostenson@bcrfa.com
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