What to Know About Tips and Gratuities?

A tip is any money that a customer leaves to an employee that is over the amount due for goods or services.

Frequently Asked Questions about Tips and Gratuities:

• Can an employer take an employee’s tips?
  • No. Tips belong to the employee
• Can my employer deduct credit card processing fees from my credit card tips?
  • No. The employer must pay you the full tip amount as indicated on the credit card receipt.
• By when should I receive payment for my credit card tips?
  • Your employer should pay you your credit card tips by the next payday after the date the card was authorized.
• Is it legal for my employer to require me to pool tips with the owner, manager, or supervisor?
  • No, it is not legal for owners, managers, or supervisors to participate in the tip pool. If a customer wants to tip a manager independently, the manager may keep such a tip, but the manager is not entitled to any part of your tips.
• Is it legal for my employer to require me to pool tips with the busboy or the bartender?
  • Yes, it is perfectly legal for your employer to require you to pool tips with anybody who provides direct table service.
• Can my employer deduct tips from my paycheck?
  • No, this is not legal. Your employer cannot deduct money from your wages based on the tips you earn. Your tips cannot count towards your hourly pay.
• What if my employer retaliates against me for taking legal action against his illegal tip policy?
  • It is illegal for your employer to retaliate or discriminate against you for asserting your rights.

If you feel that your employer is violating your right to a fair tip, contact CounselOne today to schedule a free consultation. Our attorneys are experienced employment litigators who are dedicated to reclaiming your just compensation.