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.
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