LAW OFFICE OF ARKADY ITKIN
  • Home
  • Employment Law
    • Wrongful Termination >
      • At-Will Employment
      • Termination After Unfair Warnings and Write-Ups
      • Union Grievance, Workers Comp and Wrongful Termination
      • Labor Code 970 Claims
      • Promissory Estoppel and Employment Contracts
      • Implied Contract Claims
    • Discrimination >
      • Proving Discrimination
      • Age Discrimination
      • Disability Discrimination >
        • Protected Disabilities
        • Medical Leave / Disability Accommodations
        • Job Reassignment As A Disability Accommodation
        • SSI Disability Benefits and Your Court Case
        • Sample Request for Reasonable Accommodation
      • Pregnancy Discrimination
      • Race Discrimination
      • Sample Discrimination Complaint
      • DFEH and EEOC Investigations
    • Retaliation >
      • How to Prove Retaliation
      • Dealing with Retaliation While Still Employed
      • Retaliation for Complaining
      • Whistleblower Retaliation
    • Harassment
    • Defamation at Workplace
    • Prof. License Defense
    • Leaves of Absence >
      • Medical Leave as Reasonable Accommodation
      • FMLA Entitlement and Reinstatement to Work
      • CFRA Leave
      • Employers' FMLA Notice Obligations
      • Paternity Leave (FMLA)
      • Sample FMLA Leave Request
    • Wages / Overtime Claims >
      • Wage Claims
      • Employee or Contractor
      • Exempt / Non-Exempt >
        • Admistrative Exemption
        • IT Support Specialists Compensation
        • Computer Professional Exemption from Overtime
        • Recruiters / Account Executives Exemption
        • Complaining About Being Misclassified
      • Vacation Pay / PTO
      • On-Call Time Compensation
      • Deductions fr. Commissions
    • Unempl. Benefits Appeals >
      • Tips for EDD Phone Interview
      • Unemployment Benefits Appeal Hearing Representation
      • CUIAB Hearing Tips
    • Employment Law Blog
    • For Employers
  • Personal Injury
    • Five Tips For Injury Cases
    • Slip-and-Fall Injuries
    • Assault and Battery
    • Recorded Statements
    • Repairing Your Vehicle
    • Unpaid Medical Bills
    • Injury Law Blog
    • Medical Malpractice
    • Police Excessive Force
  • Practice Areas
  • About
  • Results
  • Submit Case
  • Contact
  • Resources
    • Consultations
    • Workplace Rights Checklist
    • Deposition Tips
    • Mediation Tips
    • Effective Mediator
    • Suing Current Employer
    • Severance Agreements
    • Workplace Investigation
    • Arbitration
    • Statutes of Limitations
    • Healthy Litigation Mindset
    • Trial Tips
    • Working Remotely
    • How To Find The Right Lawyer For Your Case

Tips and Tip "Pooling" in the Service Industry

4/14/2008

0 Comments

 

What is a tip?
A tip (or gratuity) is the money that a customer leaves an employee over the actual amount due for the goods or services received. This tip money belongs to the employee, not the employer. 

Is it legal for my employer to deduct my tips from my paycheck?
No. Your employer cannot take your tips (or any part of them), and cannot deduct money from your pay because of the tips your earn. Your employer also cannot credit the amount of your tips against the money he owes you. You do not have to pay back your tips to your employer with one exception that is explained below.

When a customer pays with credit card, my employer deducts the credit card company's fees from the tips they leave. Is this legal? 
No. Since the employer has chose to use the services of the credit card company, the employer must pay that cost. The fee is a cost of doing business for your employer that he cannot shift to you. 

I made an agreement with my employer that he can deduct my tip money from my check. Is this allowed? 
No. An employer cannot get around any of the laws mentioned above by getting an employer to agree to a deduction. Like many other employment related matters, many laws and rules, especially the ones that concern public policy, preempt and trump any private agreements at work place. This includes most of the tip pooling laws. 

My employer pays me less than minimum wage because he includes my tips in my hourly pay. Is this legal? 

No. Although some states allows employers to pay tipped employees less, California requires that they be paid minimum wage, a calculation of which does not include tips.

I was told to share my tips with other employees, even though I am the one receiving tips directly from customers. Do I have to share my tips? 

Sharing tips with other employees is called "tip pooling" or "tipping out" and is usually legal if it is common in your trade (e.g. restaurant workers). Since tips belong to the employees who helped "serving the customer," and sometimes more than one employee "serves" a customer (e.g. cooks, bussers, and waiters all make sure that the customer gets good service), it is OK for your employer to force you to share tips with those other employees that help. As long as you only share tips with employees who somehow help the customer, and not supervisors or managers, forced tipping out is legal. However, the tip pooling arrangement must be reasonable. If you have to tip out too much to other employees, the arrangement may not be legal. For example, it is usual in the restaurant business for a waitress to tip out 15-20% to other employees, so this arrangement is almost certainly reasonable. On the other hand, if a waitress has to give up 60% of the tips she collects to other employees, this arrangement is probably not legal.  

Are all employees who receive tips protected?
Yes, with one exception. If an employee provides a service for customers but the business doesn't charge for that service, the employee may have to pay her tips back to her employers. Examples are a valet parking attendant who parks cars for a restaurant and a coat checker in a theater where the customer is not charged for the service. The employer must still pay minimum wage, and the employee must be paid her wage or salary in full, even if the tips collected are not enough to cover the employee's wages or salary.

0 Comments



Leave a Reply.

    RSS Feed

    San Francisco Wrongful Termination Lawyer

    Categories

    All
    Ada
    Administrative Exemption
    Age Discrimination
    At Will Employment
    Awol
    Cfra
    Constructive Discharge
    Contracts
    Defamation
    Disability Discrimination
    Disability Rights At Workplace
    Discrimination
    Employee Relations
    Feha
    Fmla
    For Employers
    Harassment
    Hostile Work Environment
    Independent Contractors
    Interactive Process
    Labor Commissioner Hearings (DLSE)
    Meal And Rest Breaks
    Mediation
    Medical Leave
    Non Compete Agreements
    Overtime Compensation
    Pregnancy Leave
    Racial Harassment
    Reasonable Accommodations
    Retaliation
    Sex/Gender Discrimination
    Sexual Harassment
    Sick Leave / PTO
    State And Public Employees
    Temp Agencies
    Tips For Employers
    Unemployment Benefits
    Vacation Time
    Vaccine Mandates
    Wage Claims
    Whistleblower Retaliation
    Workplace Disability Laws
    Wrongful Termination

    View my profile on LinkedIn

Personal Injury Law

San Francisco Personal Injury Lawyer Blog
Contact San Francisco Personal Injury Lawyer
Useful Legal Links
​

Employment Law

What Is Wrongful Termination?
Sample Request for Reasonable Accommodation
Sample Complaint about Workplace Discrimination 
FAQ About California Employment Law 

Law Office of Arkady Itkin

Contact Us
About
Our Practice Areas
Current Cases & Results 


Law Office of Arkady Itkin - San Francisco & Sacramento Injury and Employment Lawyer
We represent employees and employers in employment and wrongful termination cases, as well as victims of serious injuries in San Francisco, Oakland, Sacramento, San Jose, Palo Alto, San Mateo and throughout Northern California. We all represent businesses and start-ups in a wide range of business and employment issues and disputes. 


57 Post Street, Suite 812, San Francisco, CA 94104; Tel. (415) 295-4730; Fax. (415) 508-3474; [email protected]
Photos from shixart1985 (CC BY 2.0), Ivan Radic (CC BY 2.0), Ernst Moeksis, shixart1985, Rawpixel Ltd, Ivan Radic
  • Home
  • Employment Law
    • Wrongful Termination >
      • At-Will Employment
      • Termination After Unfair Warnings and Write-Ups
      • Union Grievance, Workers Comp and Wrongful Termination
      • Labor Code 970 Claims
      • Promissory Estoppel and Employment Contracts
      • Implied Contract Claims
    • Discrimination >
      • Proving Discrimination
      • Age Discrimination
      • Disability Discrimination >
        • Protected Disabilities
        • Medical Leave / Disability Accommodations
        • Job Reassignment As A Disability Accommodation
        • SSI Disability Benefits and Your Court Case
        • Sample Request for Reasonable Accommodation
      • Pregnancy Discrimination
      • Race Discrimination
      • Sample Discrimination Complaint
      • DFEH and EEOC Investigations
    • Retaliation >
      • How to Prove Retaliation
      • Dealing with Retaliation While Still Employed
      • Retaliation for Complaining
      • Whistleblower Retaliation
    • Harassment
    • Defamation at Workplace
    • Prof. License Defense
    • Leaves of Absence >
      • Medical Leave as Reasonable Accommodation
      • FMLA Entitlement and Reinstatement to Work
      • CFRA Leave
      • Employers' FMLA Notice Obligations
      • Paternity Leave (FMLA)
      • Sample FMLA Leave Request
    • Wages / Overtime Claims >
      • Wage Claims
      • Employee or Contractor
      • Exempt / Non-Exempt >
        • Admistrative Exemption
        • IT Support Specialists Compensation
        • Computer Professional Exemption from Overtime
        • Recruiters / Account Executives Exemption
        • Complaining About Being Misclassified
      • Vacation Pay / PTO
      • On-Call Time Compensation
      • Deductions fr. Commissions
    • Unempl. Benefits Appeals >
      • Tips for EDD Phone Interview
      • Unemployment Benefits Appeal Hearing Representation
      • CUIAB Hearing Tips
    • Employment Law Blog
    • For Employers
  • Personal Injury
    • Five Tips For Injury Cases
    • Slip-and-Fall Injuries
    • Assault and Battery
    • Recorded Statements
    • Repairing Your Vehicle
    • Unpaid Medical Bills
    • Injury Law Blog
    • Medical Malpractice
    • Police Excessive Force
  • Practice Areas
  • About
  • Results
  • Submit Case
  • Contact
  • Resources
    • Consultations
    • Workplace Rights Checklist
    • Deposition Tips
    • Mediation Tips
    • Effective Mediator
    • Suing Current Employer
    • Severance Agreements
    • Workplace Investigation
    • Arbitration
    • Statutes of Limitations
    • Healthy Litigation Mindset
    • Trial Tips
    • Working Remotely
    • How To Find The Right Lawyer For Your Case