Employers can’t just take tips from tipped employees

On Behalf of | Jul 5, 2019 | Fair Labor Standards Act (FLSA) |

Tipped employees count on the generosity of others to make ends meet. Unfortunately, not all of the tips these hard-earned workers make will go to them in all cases. If the workers are paid minimum wage, they might be forced to share their tips with others. This isn’t a good thing for the most part because they have worked hard for those tips.

In some cases, customers don’t know that the tips they give are having to be shared between employees. This comes as a shock because they think that they are taking care of the person who cared for them. It is difficult to find a good balance in tipping well and trying to show displeasure about the tip pools.

Servers and other tipped employees might not have a problem with sharing some of what they earn. It is important to note that they can only be forced to share their tips if they are paid at least minimum wage. The employer can’t claim the tip credit unless they notify you that they intend to take the tip credit.

One misconception is that employees can take tips from a tip pool for any reason. The truth is they can only tips if they are going to divide them between the hourly employees. They can face steep fines for trying to keep tips from employees.

If you think that something is amiss with your tips, make sure that you speak up. Seek a consultation from someone familiar with the most recent updates to the laws. There is a chance that you can take action to get the tips that are due to you.