Service Employee Rights and Tips

Tips and Service  Employee Rights | Marder Employment Law

As a service employee, you work hard for your tips. Whether you are a waiter, waitress, bartender, part of a cleaning crew, or any other service employee, you may be counting on your tips to help supplement your salary. If you are an employee that receives tips as part of your pay, it's essential to understand what employers can and cannot do when it comes to gratuities. Read on to learn your rights.

What is a Tip?

An employee is considered tipped when a customer pays above, and beyond the amount charged for a product or service.

What Are Your Rights When You Work on Tips?

Federal labor laws are set in place to protect employees who earn tips as part of their salary. Tipped employees are protected under the Fair Labor Standards Act (FSLA).

Common Questions About Tips

Can An Employer Take My Tips?

In the state of California, it is illegal for your employer to take all or part of your tips earned.

Is Tip Pooling Legal?

Tip pooling is legal in the state of California.

What Are the Guidelines for Tip Pooling?

While tip pooling is legal in the state of California, employers must abide by federal law guidelines. For example, only “chain of service” employees are permitted to participate in a tip pool. Chain of service employees may include but are not limited to:

  • Servers
  • Bartenders
  • Hosts
  • Bussers

What Happens if My Customer Puts my Tip on Their Credit Card?

When a customer pays their bill by credit card, employers will be charged processing fees. Many employees may be confused about how they are to receive their tip when this happens and wonder if their tips will be reduced due to the processing fee. In the state of California, it is illegal for employers to deduct any amount of the credit card processing fee from an employee's tip.

Contact an Employment Lawyer Today

If you think your employer has violated employment laws, it's your right to be compensated. Contact } today at (888) 796-4010 to learn more about how we can help.

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