Are owners allowed to take tips?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Are owners allowed to take tips?
I work at a cafe and my two bosses work behind the counter making coffees and serving food and taking orders. At the end of my shift they will take the tips and split it 3 ways. Is that legal?
Asked on February 28, 2016 under Employment Labor Law, New York
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
NY is one of many states that allows employers to pool tips. This means that employees subject to the pool have to chip in a portion of their tips, which are then divided among a group of employees (although an employee must be able to keep at least the full minimum wage). Employees subject to, and who my participate in, tip pooling are those who perform, or assist in performing, personal service to patrons as a regular and principal part of their job duties. However, employers are not legally allowed to keep any part of the pool; it all must be distributed to employees. Employees who have limited supervisory duties may participate in the pool if they provide personal service to patrons as a regular or principal part of their job. Although, an employee who has meaningful authority/control over subordinates may not take part in the pool.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.