Title
Student Affairs: Gratuity and Tipping Standard
Introduction
Purpose
UNC Student Affairs is funded primarily by student fees and receipts for the purpose of fostering student learning and success. As a public institution and stewards of the funding we receive, we are accountable for ensuring that expenses are reasonable and directly related to our mission. This Standard provides guidelines for gratuity and tipping for services provided that will be permitted for payment. Gratuity and tipping is an expense that is ordinary and reasonable to incur as a business practice; however, if the guidelines included in this standard are exceeded, individuals will be responsible for out of pocket expenses for gratuity and tipping over the amount as listed.
Scope of Applicability
The Standard in this document applies to all employees in UNC Student Affairs.
Standard
This Standard covers gratuity and tips for services primarily involving dining, including meals at restaurants, food for delivery, pick-up, and catering. A number of other services are also included. Please note that state funds cannot be used to pay for or reimburse meals at restaurants, food for delivery, catering and related gratuity or tipping for services.
Meals at Restaurants
- If gratuity is included in the price of the meal, a tip is not necessary. If a tip is paid in addition to gratuity, the individual will be responsible for these expenses out of pocket;
- A reasonable tip amount and industry standard is 15-20% of the price of the meal. Although an individual may tip less than this percentage, for any amount over 20% the individual will be responsible for these expenses out of pocket;
- If the tip amount is automatically added to the bill, the full amount of the tip assessed will be reimbursed;
- PCards are not permitted for meals at restaurants.
Food for Delivery or Pick-Up
- If gratuity is included in the price of the delivery, a tip is not necessary; however, please note that there is a difference between a delivery charge and a gratuity or tip. The delivery person does not receive the delivery charge; therefore, a tip is appropriate if not already included in the price of the purchase;
- A reasonable tip amount and industry standard is 15-20% of the price of the purchase. Although an individual may tip less than this percentage, for any amount over 20% the individual will be responsible for these expenses out of pocket;
- If the tip amount is automatically added to the bill, the full amount of the tip assessed will be reimbursed;
- Examples include pizza delivery, Tar Heel Takeout, and local establishments that deliver meals;
- PCards are permitted for delivery purchases. Please see Student Affairs Organization: Procurement Card (PCard) Procedures for specific details;
- Please see definitions for the difference between catering and food for delivery.
Catering
- If gratuity is included in the price of the delivery, a tip is not necessary; however, please note that there is a difference between a delivery charge and a gratuity or tip. The delivery person does not receive the delivery charge; therefore, a tip is appropriate if not already included in the price of the purchase;
- A reasonable tip amount and industry standard is 15-20% of the price of the catering. Although an individual may tip less than this percentage, for any amount over 20% the individual will be responsible for these expenses out of pocket;
- If the tip amount is automatically added to the bill, the full amount of the tip assessed will be reimbursed;
- Under certain circumstances, PCards may be permitted for catering. Please see Student Affairs Organization: Procurement Card (PCard) Procedures for specific details;
- Please see definitions for the difference between catering and food for delivery.
Gratuity and Tipping for Other Services
- The following are amounts not to exceed for other services. For amounts over the cost listed, the individual will be responsible for these expenses out of pocket:
- Airport and shuttle drivers: $1 per bag
- Hotel baggage handlers: $1 per bag
- Taxi, Uber, Lyft: 15% of total cost
Exceptions
Any exceptions to the standard require approval in advance by the department head; otherwise, for any amount over the listed cost or percentage the individual will be responsible for these expenses out of pocket.
Definitions
- Catering
- Catering is when a company brings food and sometimes takes care of the dining services at an event. Catering generally requires consultation and gratuity is generally included. Catering also generally requires a contract or agreement, and sometimes a deposit is required for a minimum guarantee for attendance. Examples include the Student Affairs winter and end of year celebration, large formal special events. PCards are permitted for catering items and please see Student Affairs Organization: Procurement Card (PCard) Procedures for specific details.
- Delivery
- Although delivery may involve consultation, generally the meal is delivered and no additional action is required. Gratuity or a delivery charge may be included in the cost of the purchase. Examples include pizza and deliveries from local restaurants for meetings. PCards are permitted for delivery items and please see Student Affairs Organization: Procurement Card (PCard) Procedures for specific details.
University Policies, Standards, and Procedures
Contact Information and Approval
Resources for more information and exceptions include the following:
- Business and Finance Officer in your respective business hub;
- Director of Business and Finance for UNC Student Affairs.
Approval
- Student Affairs Business and Finance Officers
- Director of Student Affairs Business and Finance
- Senior Executive Team