A restaurant near Cincinnati is making national headlines for a policy that discourages customers from tipping their waitress.

Bob Conway owns Packhouse Meats, a meatball joint on the Kentucky side of the Ohio River.  He says he's tired of restaurant servers being held hostage by the customer.

“They'll have this table of 30 that takes up all of their time and get a $3 tip from it,” he tells KTRH News.

Conway instead gives his servers 20 percent of their food orders or $10 an hour if its slow.

“We came up with that number just by talking with servers,” he says.  “What do you have to be making in order to make it worth your while to be here?  They came up with $10.”

Like Kentucky, tipped waiters in Texas earn the federal minimum wage of $2.13 an hour.  Conway says his “no tip” policy may confuse some customers, but so far it is paying off.

“Even when they're delivering a mediocre job, they're still working just as hard to take care of a table, and they deserve to be compensated for that,” he says.

However, Conway says that doesn't mean servers are allowed to slack off either.