Your Tips Belong to You

Managers and supervisors cannot participate in tip pools. If your employer takes your tips or forces you to share with management, you have a case.

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Federal Law is Clear: Tips Are Yours

Under the Fair Labor Standards Act (FLSA), tips are the sole property of the employee. Employers cannot take, keep, or redistribute your tips except in very limited, legal tip-pool arrangements.

✅ WHO CAN SHARE TIPS

• Servers & Waitstaff
• Bartenders
• Bussers & Runners
• Hosts (usually)
• Kitchen Staff (ONLY if employer pays full minimum wage and takes no tip credit)

❌ WHO CANNOT SHARE TIPS

• Managers & Assistant Managers
• Owners
• Supervisors (anyone with hire/fire power)
• Dishwashers/Cooks (Illegal if employer takes a tip credit)

Common Schemes to Steal Your Tips

👔

The "Working Manager"

A manager serves tables occasionally and keeps tips from the pool. Illegal. Even if they do the work, managers can only keep tips given directly to them by customers for service they performed alone.

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Invalid Tip Pools

Employer takes a "tip credit" (pays you $2.13/hr) but forces you to share tips with back-of-house staff (dishwashers/cooks). Illegal. If BOH is in the pool, you must be paid full minimum wage ($7.25+).

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Credit Card Fees

Employer deducts credit card processing fees from your tips. Illegal in many states (like CA, MA) and strictly limited under federal law (cannot reduce pay below minimum wage).

Industries With Frequent Violations

🍽️ Restaurants

🍸 Bars & Clubs

🏨 Hotels

💇‍♀️ Salons & Spas

🎰 Casinos

State-Specific Tip Laws

Texas & Federal

Tip Credit: Employee can be paid $2.13/hr if tips bring total to $7.25/hr.
Pooling: Limited to "customarily tipped" staff.

Florida

Min Wage: $14.00 (rising to $15.00 by 2026).
Tip Credit: Employer can take credit of max $3.02/hr.

California

NO Tip Credit: Employers must pay full state minimum wage ($16.90+) PLUS you keep all tips.
No deductions for credit card fees allowed.

New York

Tip Credit: Permitted but heavily regulated.
Spread of Hours: Extra hour of pay required for shifts spanning 10+ hours.

* Laws vary by state and are subject to change. Contact us for specific advice.

What You Can Recover

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Stolen Tips

Repayment of all tips illegally taken or pooled

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Minimum Wage Difference

If the tip pool was illegal, the "tip credit" is invalid. You may be owed the full difference between $2.13 and $7.25 for EVERY hour worked (approx $5/hr) going back 2-3 years

⚖️

Liquidated Damages

Double the amount of unpaid wages/tips

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Attorney Fees

The employer pays our fees, not you

Frequently Asked Questions

Can my manager participate in the tip pool?

No. Managers and supervisors are prohibited from participating in tip pools under federal law. This includes assistant managers, shift supervisors, or anyone with authority to hire, fire, or discipline employees. Even if they occasionally serve tables, they cannot share in the tip pool. They may only keep tips given directly to them by customers for service they personally performed.

Can my employer force me to share tips with kitchen staff?

It depends on whether your employer takes a tip credit. If your employer pays you the tipped minimum wage ($2.13/hr federally) and takes a tip credit, you can only be required to share tips with "customarily tipped" employees (servers, bartenders, bussers, hosts). If your employer pays you full minimum wage and takes NO tip credit, they can require you to share with back-of-house staff like cooks and dishwashers.

Is it legal for my employer to deduct credit card processing fees from my tips?

It varies by state. Some states (like California and Massachusetts) completely prohibit deducting credit card fees from tips. Under federal law, such deductions are only permitted if they don't reduce your total pay below minimum wage. Many employers violate this rule, especially when taking a tip credit.

What happens if the tip pool is illegal?

The entire tip credit becomes invalid. If your employer took a tip credit (paid you $2.13/hr instead of $7.25/hr) but maintained an illegal tip pool, you're entitled to the full minimum wage for every hour worked. This means approximately $5/hour difference, going back 2-3 years, PLUS liquidated damages (doubling your recovery).

How much can I recover in a tip pool violation case?

You can recover all stolen tips, plus the minimum wage difference if the tip credit was invalid (approximately $5/hour for 2-3 years), plus liquidated damages equal to your unpaid wages (effectively doubling your recovery), plus attorney fees and costs. For a server working 40 hours/week for 2 years, this could easily exceed $40,000-$60,000 in total recovery.

Do California tip laws differ from federal law?

Yes. California has stronger protections. California prohibits tip credits entirely - employers must pay full minimum wage ($16.00+) regardless of tips. California also prohibits deducting credit card fees from tips and has strict rules about who can participate in tip pools. Violations can result in additional penalties under California labor code.

What if I signed an agreement allowing the tip pool arrangement?

You cannot waive your rights to tips under federal law. Any agreement allowing an illegal tip pool (such as one including managers) is invalid and unenforceable. Courts consistently reject employer arguments that employees "agreed" to illegal tip arrangements. If tips were stolen, you're entitled to recover them regardless of what you signed.

Can I file a claim if I still work at the restaurant?

Yes. Federal law prohibits retaliation for filing wage claims. Many restaurant workers successfully file claims while still employed. If your employer retaliates (fires, reduces hours, demotes, or otherwise punishes you), that's a separate legal violation with its own damages. We can discuss strategies to protect your rights, including collective actions where multiple workers file together.