January 27, 2009
Is my employeer jipping me out of my tips?
Befuddled asked:
If I’m paid $7 an hour when minimum wage is $7.15, but receive $20-$30 in tips in the span on two weeks, is my employeer unfairly taking any money away? Recently some employees at my job have begun to complain. I’m really not an expert on these matters, but I want to be educated when voicing any opinions- especially ones that pertain to finances/taxes…etc.. We are supposed to be guaranteed a dollar tip an hour (I’m not sure but I think that this is included in the $7 rate) plus all tips are divided amongst the employees who work that day.
I’m confusing myself writing this..so if there is anyone out there who can decipher this I would really appreciate it.
Filed under Law & Ethics by

Comments on Is my employeer jipping me out of my tips?
If you’re making $7 an hour and you’re guaranteed $1 an hour in tips, your paycheck should reflect a minimum of $8 an hour pay.
Unless you have something in writing that specifies how further tips are to be distributed, the employer can keep any excess tip money.
It’s possible that he is doing it because all of the employees don’t GET enough tips to make the guarantee amount yet.
Only you know how much you should be making in tips. Keep watch out for problems.
I do know that I just read a federal court case that was done last month that a barista from a coffee place had his tips taken by the manager and the manager also took a cut of the tips (which he cant because he is paid a salary). The barista was awarded 100 million in his judgement… yes it will go to appeals court and yes there will more than likely be a settlement…but tips are your wages so watch out if the management is taking your money. You have to be counting the money at some point in the evening and you can add it up per days that you work.
First…the company is breaking the labour laws…They cannot hire you less than min. wage.
2nd. Employers cannot take away tips given to the employees. There are laws that state that.
Roy