Question:
Is it legal for my boss to take my tips?
Wolfcry7
2009-09-28 14:02:34 UTC
I work in a salon in Colorado. I recently learned that my boss was taking 10% of all of the employee's tips and putting them in a fund in the store. I was told this fund was going to be used for a holiday party at the end of the year. I was annoyed but felt like there wasn't really anything that I could do about it. I became extremely angry when I learned yesterday that my boss comes into the store almost every day and takes approximately $10-20 from this fund to buy herself coffee, lunch, etc... If this wasn't bad enough, she has now taken over $300 from the fund for unknown reasons. Can it really be legal for her to take a percentage of the tips that her employees earn?
Three answers:
YAhoo
2009-09-28 14:15:29 UTC
Such a fund would have to be only optional for employees(read: it would just be a friendly agreement). What your boss is doing when she takes her coffee money is embezzling on a small scale. Sounds like she is scamming you and your co-workers.
rickinnocal
2009-09-28 14:19:23 UTC
No, it is not. Federal law specifically prohibits this.



QUOTE:

"Retention of Tips: The law forbids any arrangement between the employer and the tipped employee whereby any part of the tip received becomes the property of the employer. A tip is the sole property of the tipped employee. Where an employer does not strictly observe the tip credit provisions of the Act, no tip credit may be claimed and the employees are entitled to receive the full cash minimum wage, in addition to retaining tips they may\should have received.



Service Charges: A compulsory charge for service, for example, 15 percent of the bill, is not a tip. Such charges are part of the employer's gross receipts. Where service charges are imposed and the employee receives no tips, the employer must pay the entire minimum wage and overtime required by the Act.



Tip Pooling: The requirement that an employee must retain all tips does not preclude a valid tip pooling or sharing arrangement among employees who customarily and regularly receive tips, such as waiters, waitresses, bellhops, counter personnel (who serve customers), busboys/girls and service bartenders. Tipped employees may not be required to share their tips with employees who have not customarily and regularly participated in tip pooling arrangements."

ENDQUOTE



An argument could be made that retaining part of every employees tips for a holiday party - for ONLY tipped employees - constituted a "valid tip pool", but it's a stretch. The moment the owner stuck her hand in the jar and took some of the money for her own use, though, the issue became moot. That's your money, and you can demand it back.



Richard
2016-03-03 09:20:46 UTC
Its not illegal, but he/she should definitely NOT be doing that... your boss is an ******.. talk to ur boss and try to work something out, if ur boss fires you for wanting your tips then THAT IS illegal :) Im sorry to hear that, maybe look for a new better paying job? Good luck


This content was originally posted on Y! Answers, a Q&A website that shut down in 2021.
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