Woman Notices An “Employee Health” Charge On Her Bill, Learns She’s Paying For Staff’s Healthcare And Is Majorly Confused (2024)

Woman Notices An “Employee Health” Charge On Her Bill, Learns She’s Paying For Staff’s Healthcare And Is Majorly Confused (1)

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You’ve finished a delicious meal at a local restaurant you love. You’ve paid the check. You’re signing the tip, but that’s when you notice something extremely odd—there’s a small additional charge that reads ‘employee health.’

And that’s… what pays for the employees’ healthcare in some places. Just like us and many others, you’re probably really confused. As was Ashley Nicole, @ashnichole_xo, the co-founder of Parallel Apparel and the founder of the Unsolicited Advice podcast. She filmed a video where she explained the situation and asked people whether this type of charge was normal. Scroll down to watch Ashley’s TikTok in full and look at how different people reacted to the news.

Bored Panda has reached out to Ashley via email and we’ll update the article as soon as we hear back from her.

More info: TikTok | Instagram | Podcast | YouTube | Linktree

Ashley Nicole went viral on TikTok after a peculiar experience at a restaurant

Image credits: ashnichole_xo

The woman noticed something odd on her bill

“The weirdest thing just happened to me. It’s cold and it’s rainy in LA, so me and my bestie decided to go out to dinner. We go to one of my favorite restaurants. This is the Osteria La Buca. It is an Italian restaurant here in LA and I’ve been to multiple times. We enjoy our meal. We get the check, we pay for our check, and as we are like signing the tip and stuff, we notice something.”

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Image credits: ashnichole_xo

Image credits: Louis Hansel (not the actual photo)

She was confused by what the ’employee health’ charge was supposed to mean

“Here’s the receipt, and if you notice down here towards the bottom, there is a $4 and 75 cent charge for employee health. Do you see that, a 5% charge for employee health? My immediate thought was, ‘What is employee health? What does that mean?’ We run through a couple of options and I’m like, ‘You know what? I’m just gonna ask.'”

Image credits: ashnichole_xo

She asked one of the employees about it on her way out

“So as we’re like walking out, I go up to the hostess and I’m like, ‘Hey, quick question, just curious. I saw that you guys charged us $5 each, not total for the table, each – both of us, for employee health. And I just had to ask like, what is that?’ And she goes, ‘Oh, that’s our healthcare.’ And my reaction was, ‘Your healthcare?’ And she goes, ‘Yes, our healthcare.'”

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Image credits: ashnichole_xo

The woman wondered if this was normal and asked others to share their experiences

“I’ve never heard of that before, ever. And I had to find out – is that normal and have I been living under a rock? Is it a normal thing or is this weird because I’ve never experienced this before and it feels weird, but maybe this is normal elsewhere. Let me know ’cause I’ve never seen this before.”

Image credits: Andrea Piacquadio (not the actual photo)

You can watch Ashley’s full viral TikTok right over here

@ashnichole_xo Is this normal?? #greenscreen #receipt #employeehealth #restaurant ♬ original sound – Ashley Nichole

It feels very bizarre to expect the customers to pay for the employees’ healthcare

Healthcare and tipping culture are some of the most sensitive topics in the United States. Add the two together and you have something incredibly nuanced. Ashley’s video got a million views, was liked over 94k times on TikTok and got more than 15.4k comments, as people shared their thoughts about the ‘employee health’ tip charge on the receipt.

Taking a step back and looking at things objectively, it feels outright bizarre (and a bit dystopian) to expect the customers to foot the bill for someone’s employee’s healthcare costs. The company employing ought to do that.

This situation highlights the problem with tipping culture in the US as a whole, too. Moving to fairer employment contracts, stable wages, and healthcare coverage seems the obvious thing to do as well. That is if your goal is to motivate your workers and give them access to basic benefits. Or, in short, why should the customers take on the employers’ responsibilities?

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Speaking to BuzzFeed, Ashley said that she thought it was a mistake when she first saw the charge on the receipt. “This was my first time ever seeing anything like this. Once I asked the hostess to clarify what the charge was, I was simply confused why I was the one paying for the healthcare of my server,” she said. “The overwhelming response was that most people hadn’t seen anything like it.”

The healthcare system in the US is very wasteful

The thing is that even if every single employer paid for their workers’ healthcare, the system would still need to be reformed. As things stand, healthcare in the US is incredibly inefficient and a lot of money is wasted on administrative costs.

According to Investopedia, the US spends roughly 8% of every single healthcare dollar on administrative costs. Meanwhile, hospitals practice so-called defensive medicine where they order lots of costly tests in order to prevent potential lawsuits. So while a CT scan might cost below a hundred bucks in Canada and five times as much in Australia, the average cost in the US is $896.

The very same MRI scan that costs $450 in the United Kingdom would cost three times as much in the US. In brief, medical procedures are simply very expensive in the Land of the Free, especially when compared to other thriving, developed nations.

Without beating around the bush, service providers charge what they think they can get away with (aka “what the market will bear”). A possible solution to this could be to have more governmental oversight and have specific prices for procedures.

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Tipping culture is very problematic as well

It’s not just healthcare that should ideally be overhauled. Tipping culture as a whole raises a lot of questions. For instance, The New York Times looked at how “in all but eight states,” employers can choose to pay their tipped employees subminimum wages (as low as $2.13 per hour). This is allowed, so long as the tips they earn let them make up the difference and ‘get to’ minimum wage. Around 5.5 million workers are paid according to this ‘tip credit’ system.

This is problematic because there’s a lot of space for abuse at the workers’ expense. One bartender from Cleveland told the NYT that he’s never seen anyone who’s ever been compensated if they earned below-minimum amounts. It’s extremely difficult to get the money that your employer owes you, even if you’re well within your rights. There are plans to ban subminimum pay and focus on decent minimum wages in some states, however. How widely this will spread remains to be seen.

People had various opinions about the ’employee health’ charge. Here’s what some of them thought

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Woman Notices An “Employee Health” Charge On Her Bill, Learns She’s Paying For Staff’s Healthcare And Is Majorly Confused (2024)

FAQs

What if my employer did not deduct my health insurance premiums? ›

​If there was no deliberate error, then the employee will need to repay the costs. I wish it was better news. It may be possible to work a plan out with the employer where a certain amount extra for the premium is taken from each check until that amount is paid in full.

Did the Affordable Care Act penalize employers who did not offer health insurance for employees? ›

The employer must pay a penalty for not offering coverage. The penalty for each month the employer fails to offer coverage is $2,970 divided by 12, times the number of full-time employees (minus up to 30). The employer must pay a penalty for not offering coverage that is affordable and provides minimum value.

Do tech companies pay for health insurance? ›

87% of software and technology development companies offer medical benefits to their employees. This is well above the national average of 69%. These businesses provide an average monthly employer premium of $1,032 for family coverage. This is also above the national average of $1,121.

Do companies in the USA provide health insurance? ›

Employer-sponsored health insurance is partially paid for by businesses on behalf of their employees as part of an employee benefit package. Most private (non-government) health coverage in the US is employment-based.

Do employers deduct health insurance payments from employee paychecks? ›

The premiums are withheld from the paycheck automatically, so there is no need for a separate collections process. The premiums are taken out of the employee's paycheck pre-tax, so the actual reduction in take-home pay is less than the amount of the premium. It's fully compliant with IRS guidelines, like "Section 125"

Can employers deduct pay for mistakes? ›

No, your employer cannot legally make such a deduction from your wages if, by reason of mistake or accident a cash shortage, breakage, or loss of company property/equipment occurs.

What is one requirement of the Affordable Care Act? ›

One provision contained in the law is known as the “individual mandate” which requires that all Americans (regardless of age) be covered by health insurance (through a group or individual plan) or pay an annual financial penalty assessed by the Internal Revenue Service, unless waived under certain limited circ*mstances ...

What are the employer responsibilities for the Affordable Care Act? ›

Employer mandate overview

Employers must offer health insurance that is affordable and provides minimum value to 95% of their full-time employees and their children up to the end of the month in which they turn age 26, or be subject to penalties.

Who does not benefit from the Affordable Care Act? ›

Individuals with incomes exceeding 400 percent of the federal poverty level (FPL; $46,680 for an individual, $95,400 for a family of four) are ineligible for either Medicaid or Marketplace tax credits. This group represents 16 percent of the ineligible, uninsured population. 2.

Is $200 a month a lot for health insurance? ›

Is $200 a month a lot for health insurance? The value of $200 per month for health insurance can vary based on individual needs and location. For some, especially those with employer-sponsored coverage or receiving subsidies under the ACA, $200 might seem high.

Do companies make money from health insurance? ›

Insurance companies earn a profit by charging their customer premiums for buying insurance policies. However, insurers also earn income by investing the premiums received in various products, including U.S. Treasuries and corporate bonds.

Do US employers pay for health insurance? ›

About 86% of U.S. private-sector employees worked for establishments that offered employer-sponsored health insurance, according to a 3-year average based on 2020-2022 data collected by the Insurance Component of the Medical Expenditure Panel Survey (MEPS-IC).

Is healthcare free in USA with insurance? ›

There is no universal healthcare. The U.S. government does not provide health benefits to citizens or visitors. Any time you get medical care, someone has to pay for it.

Is it mandatory to provide health insurance to employees in USA? ›

Under the ACA, employers with 50 or more full-time employees (or the equivalent in part-time employees) must provide health insurance to 95% of their full-time employees or pay a penalty to the IRS. This penalty is quite hefty—$4,460 per employee per year (in 2024).

How does employer based health insurance work in the US? ›

You pay a health insurance premium to the health insurance company to have coverage and your employer pays its share of the premium. These plans typically have provider networks. Staying within the provider network saves you money.

Is health insurance a mandatory deduction? ›

The individual mandate means that Californians must either have qualifying health insurance, or pay a penalty when filing their state tax return unless they qualify for an exemption.

Are health insurance premiums deducted from income? ›

Health insurance premiums are deductible if you itemize your tax return. Whether you can deduct health insurance premiums from your tax return also depends on when and how you pay your premiums: If you pay for health insurance before taxes are taken out of your check, you can't deduct your health insurance premiums.

Are health insurance premiums paid by employer taxable income? ›

Health plans

If an employer pays the cost of an accident or health insurance plan for his/her employees (including an employee's spouse and dependents), then the employer's payments are not wages and are not subject to social security, Medicare, and FUTA taxes, or federal income tax withholding.

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