joining me tonight, there is a restaurant out here in l.a. called republique. recently the owners have added a 3% fee to every bill to pay for employee health care. that's caused some controversy. here now bill chait and walter mansky who run republique. am i saying it right? why are you making a big deal of this by saying there's a 3% surcharge? why don't you add it into the bill so no one would know it and take the 3% and pay for insurance? >> in california we have a very restrictive gratuity system and none of the gratuity can actually be shared with the kitchen. the genesis of this was a way to give something to the kitchen to show appreciation for the service staff. >> so the government in country, state government actually regulates your tips, where they