Tip Pooling Should Never Include Supervisors, Managers, and Owners.
Tip pooling is a common legal practice in many service industries. Employers may insist that all tipped employees share their tips at the end of their shift. However, laws protect these employees from being forced to share tips with supervisors, managers, and business owners.
If your employer forces you to share your tips with management, they are violating the law. You have a right to seek compensation. You need a qualified employment lawyer to help you fight for your rights against your employer and receive the justice you deserve.
What Are Tips?
What Is Tip Pooling?
In some restaurants and banquet facilities, tipped employees must share their tips at the end of the shift. Some employees share tips with bussers and bartenders. Others combine the tips and split them at the end of the shift among all servers, bartenders, bussers, and more. This process is known as tip sharing or tip pooling.
Who Receives Pooled Tips?
Restaurant staff, banquet staff, and other service industry staff members are eligible to receive pooled tips at the end of the shift. These staff members include:
- Hosting staff
- Hotel Cleaning staff
Supervisors, managers, and owners are not permitted to participate in tip sharing.
What Are the Laws When Creating a Valid Tip Pool?
Federal wage and hour laws clearly state the rules for tip sharing. All employers with tipped employees must abide by federal law if they want their employees to participate in the process. The law requires the following:
- An employee’s combined pay between paid wages and tips must equal your state’s minimum wage. If it does not, your employer must pay you the difference.
- Your employer must inform you of the tip-sharing policy before you begin working.
- Supervisors, managers, employers, and owners are prohibited from participating in tip pooling.
- As long as the owners do not take a tip credit, back-of-the-house employees may be permitted into the tip pool. These employees include cooks and sou chefs.
What Violates Tip Pooling Laws?
Supervisors, managers, employers, and owners are prohibited from participating in tip pooling. Other practices are also prohibited under federal laws regarding tip pooling. Some of these practices include:
- Classifying service charges as tips. Service charges include any extra fees added onto a bill that must get paid as settling the bill. Even mandatory tips added to a bill for large parties are considered service charges.
- Keeping credit card tips past payday to wait for reimbursement from the credit card company.
- Deducting any fees that would bring your pay below minimum wage for your state.
- Using tips to compensate employees for overtime hours instead of properly paying the proper overtime wages.
- Refusing to pay the minimum wage difference to employees whose tips plus hourly rate is less than minimum wage.
- Refusing to pay employees overtime pay in their paychecks.
Can Your Boss Fire You from Work If You Refuse to Tip Them Out as Part of a Tip Pool?
The law prohibits employers, managers, supervisors, and business owners from receiving tips as part of the tip pool. Therefore, if your employer includes themselves in your tip pool, you can refuse to pay their share. If you get fired from work as a result, you may have a claim for wrongful termination and retaliation.
What Are the Rights of Victims of Tip Pooling Violations in the Workplace?
The Department of Labor’s wage and hour laws dictate tip-pooling requirements. If your rights are violated under these laws, you can file a complaint in federal court within two years of the offense. If you believe your employer purposely violated the laws, you may file the complaint within the three-year statute of limitations.
Consult a qualified employment lawyer to learn more about your rights when filing a complaint about tip-sharing violations.
What Compensation Is Available to Victims of Tip Sharing Violations?
If you have a claim against your employer for tip-sharing violations, you have a right to seek compensation. If you were illegally fired as a result of these violations, you may request your job back. You may also request financial relief, such as lost wages, legal fees, money for pain and suffering, and emotional distress.
How Can an Experienced Employment Lawyer Help Your Case for Tip Sharing Violations?
When your employer violates the laws regarding tip pooling, you have a right to fight back. An experienced employment lawyer can help you understand your rights and file a complaint against your employer in the proper court and under the proper time limit.
Your lawyer can advocate for your rights during early negotiations, throughout the settlement process, and trial (if needed). They can stand by your side and advise you of your rights to compensation and justice. Most importantly, they will ensure you do not try to fight for your rights unarmed and alone.
Contact Our Wage and Hour Attorneys for Your Free Consultation
You work hard for every penny you earn. You deserve to work for an employer that appreciates the hard work you put in for your tips. If you are the victim of tip pooling violations in the workplace, the experienced wage and hour lawyers at the Derek Smith Law Group can help.
Are You a Tipped Employee? Does Your Employer Insist on Being Included in Your Tip Pool? Please Call Us at 800.807.2209 to Learn More About Your Rights.