If an owner of a restaurant is collecting the tips andincluding himself, is this legal?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If an owner of a restaurant is collecting the tips andincluding himself, is this legal?
He divides the money equally between all employees that worked that week, taking their hours and giving them their percentage of the tips. He also includes himself that percentage. He works every day/night so I am assuming he is collecting way more than any of us. Although highly unethical, is this legal in the state of NC?
Asked on August 2, 2011 North Carolina
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
I don't believe the employer is allowed to share in the tip pool in these situations in North Carolina. North Carolina does have a law allowing the employer to take a tip credit against the minimum wage paid but the employees must be able to keep all of their earned tips, report the amount to the employer and be warned in advance of this policy by the employer and agree to it. You should file a report with your state department of labor and understand, you cannot be fired in retaliation.
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.