Can My Manager Take Tips?
No. California tips laws explicitly prohibit managers from participating in tips designated for employees, making it clear that managers take tips in California only under very limited and specific conditions. Labor Code Section 351 states: “No employer or agent shall collect, take, or receive any gratuity or a part thereof that is paid, given to, or left for an employee by a patron, or deduct any amount from wages due an employee on account of a gratuity, or require an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer.” This ensures tips are considered the sole property of the employee or employees for whom they were intended.
If your manager is unlawfully taking your tips, contact me as your attorney. I can help you recover your hard-earned money with no upfront out-of-pocket cost, as I only charge a small contingent fee on the amount recovered.
Understanding California’s Tip Laws
When discussing whether managers take tips in California, it is essential to understand the laws prohibiting employers from taking any portion of tips. California’s labor code is more comprehensive than most other states’ regulations. Section 351 gives the most information on gratuities or tips, stating that tips belong to employees, not employers (“declared to be the sole property of the employee or employees to whom it was paid, given, or left for”). Employers are prohibited from taking any portion of an employee’s tips or using tips to count towards the minimum wage. Credit card tip laws further state that the employee must receive the entire tip amount, and the employer must cover any credit card processing fees.
Can You Accept Tips as a Manager?
Managers in California are generally not allowed to take tips intended for employees. Labor Code Section 351 explicitly states: “No employer or agent shall collect, take, or receive any gratuity or a part thereof that is paid, given to, or left for an employee by a patron.” However, federal labor laws clarify that managers and supervisors are allowed to keep tips that they received directly from customers based on the service the manager or supervisor “directly and solely” provided.
“Tips belong to the employee, not to the employer,” according to California law. California courts have consistently interpreted this to mean that managers cannot share in tip pools. “Tip pooling is permissible as long as it is done in a ‘fair and reasonable’ manner,” and managers are excluded from participating. In rare cases where a manager performs substantial direct service to a customer, they may be eligible to receive tips for that specific service.
For example, bartenders have been deemed eligible for tips even if they are not directly involved in serving tables. Still, the rules regarding tips and managers are strict, as “tips are declared to be the sole property of the employee or employees to whom it was paid, given, or left for.” Even in cases where managers may engage in tip-related activities, the law ensures that employees retain their rightful earnings.
If your manager is unlawfully taking your tips, contact me as your attorney. I can help you recover your hard-earned money with no upfront out-of-pocket cost, as I only charge a small contingent fee on the amount recovered.
Can Managers Get Tips in California?
Questions about whether managers take tips in California often arise in discussions of tip-sharing and management roles. California Labor Code Section 351 states that “no employer or agent shall collect, take, or receive any gratuity or a part thereof that is paid, given to, or left for an employee by a patron.” However, managers in California can receive tips under certain conditions. If a manager performs substantial or direct service to customers, they may be eligible to participate in tip pooling arrangements. Federal labor laws clarify that managers and supervisors are prohibited from retaining tips earned by other employees, but they are allowed to keep tips that they received directly from customers based on the service the manager or supervisor “directly and solely” provided.
How to Report Manager Stealing Tips?
If you need help reporting or recovering tips your manager has unlawfully taken, contact me as your attorney. I work on a contingent fee basis, so there’s no upfront cost to you, and I only get paid if I recover money for you.If a manager is stealing tips, you can file a wage claim with the Division of Labor Standards Enforcement (the Labor Commissioner’s Office). According to Labor Code Section 351, employers are prohibited from using tips as direct or indirect credits against an employee’s wages.
You can also file a lawsuit in court against your employer to recover the lost wages. “When the Order, Decision, or Award (ODA) is in the employee’s favor and there is no appeal, and the employer does not pay the ODA, the Division of Labor Standards Enforcement (DLSE) will have the court enter the ODA as a judgment against the employer.” In California, tips are the “sole property of the employee or employees to whom they are given,” and taking them is considered a violation of state law. Filing a discrimination or retaliation complaint is another option if your employer retaliates against you for reporting the theft. An appellate court in California has ruled that tips should not be shared with employees like cooks and dishwashers, emphasizing the employee’s right to their tips.
If you no longer work for the employer, you can also make a claim for the waiting time penalty. Violating California tip laws is classified as a misdemeanor offense under Section 354, carrying potential penalties of a $1,000 fine, up to 60 days in prison, or both. “Accurate record-keeping is essential for compliance purposes and can help defend against potential legal disputes.”
What to Do If Your Boss is Taking Tips?
If your boss is taking your tips, let me assist you in recovering your money. There is no upfront cost, and I only take a small contingent fee from the funds I recover for you. Contact me today for help. If your boss is taking tips, you have the right to file a complaint or lawsuit to recover your wages. “Employers are prohibited from taking any portion of an employee’s tips or using tips to count towards the minimum wage.” Filing a wage claim with the Division of Labor Standards Enforcement (DLSE) is one of the first steps. “The purpose of the conference is to determine the validity of the claim, and to see if the claim can be resolved without a hearing.”
Employers must pay employees their tips by the next payday and cannot deduct credit card processing fees from those tips. If the matter is not resolved at the conference, it is usually referred to a hearing, or it may be dismissed for lack of evidence. A restaurant cannot “engage in tip pooling but pay out pooled tips to invalid employees (management, cooks, dishwashers, cashiers).” If a manager takes tips, “the Division of Labor Standards Enforcement (DLSE) will have the court enter the ODA as a judgment against the employer.” It is crucial to distinguish between tips and mandatory service charges, as “mandatory service charges are the restaurant’s property, not the tipped employee’s.” “Employers must refrain from pressuring or coercing employees, including managers, to participate in tip pooling against their will.”
Can I Sue My Boss for Stealing My Tips?
Yes, you can sue your boss for stealing your tips under California labor laws. Labor Code Section 351 declares that “every gratuity is hereby declared to be the sole property of the employee or employees to whom it was paid, given, or left for.” If your boss has taken your tips, I can help you file a lawsuit and recover what you are owed. There are no upfront fees, as I work on a contingent fee basis and only collect a small portion of the recovered amount. Contact me today for assistance.
Violating California tip laws is a misdemeanor under Section 354 and can result in fines, prison time, or both. Federal labor laws state that managers cannot retain tips earned by other employees. “You can either file a wage claim with the Division of Labor Standards Enforcement (the Labor Commissioner’s Office), or you can file a lawsuit in court against your employer to recover the lost wages.”
California courts have interpreted the law to allow “for involuntary tip pooling so long as the tip pooling policy is not used to compensate the owner(s), manager(s), or supervisor(s) of the business.” When your employer does not pay or appeal an Order, Decision, or Award (ODA), “you may either try to collect the judgment yourself, or you can assign it to DLSE.” Employers cannot deduct credit card fees from tips, and “tips are declared to be the sole property of the employee or employees to whom it was paid, given, or left for.” If your employer retaliates against you for filing a complaint or lawsuit, you can “file a discrimination/retaliation complaint with the Labor Commissioner’s Office.” “Employers are prohibited from taking any portion of an employee’s tips or using tips to count towards the minimum wage.”
Exceptions and Interpretations
When addressing exceptions to the rule, one question is whether managers take tips in California when performing non-managerial duties. Courts have, however, differed over the years when it comes to the interpretation of who is eligible to participate in the tip pool. Managers are not directly engaged in providing table service and are generally excluded from tip pools. While the law generally prohibits managers from receiving tips, there are a few exceptions and considerations worth noting. For instance, if a manager performs substantial customer service duties alongside their supervisory responsibilities, they may be considered eligible to participate in tip pooling arrangements.
Mandatory Service Charges vs. Tips
The distinction between service charges and tips often determines whether managers take tips in California legally. California joins many other states in ruling that mandatory service charges (like those automatically added to the bill for large parties) are not tips. While tips are voluntary payments made by customers to employees for services rendered, mandatory service charges are fees imposed by the establishment. California law requires that mandatory service charges be clearly distinguished from tips and not be distributed to employees as part of a tip pool. Santa Monica’s Code of Ordinances, section 4.62.040, states that employers must distribute service charges “in their entirety to the Employee(s) who performed services for the customers from whom the Service Charges are collected.”
Legal Consequences for Violating California Tip Laws
Employers may face severe penalties for any situation where managers take tips in California improperly. Section 354 states that violating California tip laws is a misdemeanor offense with a maximum penalty of a $1,000 fine, up to 60 days in prison, or both. Examples of violations include a local California employer counting tips toward its minimum wage requirement, a multi-state chain incorrectly claiming a tip credit in California, or a restaurant engaging in tip pooling but paying out pooled tips to invalid employees (management, cooks, dishwashers, cashiers). Employers who unlawfully withhold or misappropriate employees’ tips may face legal action and are liable for unpaid wages, damages, and penalties.
Employer Responsibilities and Best Practices
To avoid disputes or violations, employers must ensure there are no circumstances where managers take tips in California contrary to labor laws. California law allows for employer-mandated tip pooling as long as the process is fair, reasonable, and excludes managers, owners, or supervisors. Properly managed tip pooling can enhance team morale and ensure equitable distribution of tips, benefiting both front-of-house and back-of-house staff. Employers are required to maintain detailed records of all tips received and distributed, including the names of participating employees and the amounts received. By understanding these key points, California employers can navigate the complexities of tip-related regulations more effectively, ensuring compliance with state laws while fostering a fair and transparent workplace for their employees.
Conclusion
Understanding whether managers take tips in California is central to complying with the state’s strict labor laws. California’s tip laws aim to protect employees’ earnings and ensure fair distribution of tips. While managers are generally not entitled to receive tips, they may retain tips for direct service provided to customers under limited circumstances. Navigating these rules requires careful attention to Labor Code Section 351 and relevant court interpretations to maintain compliance and avoid legal risks. Understanding the nuances of California’s tipping regulations is essential for both employers and employees to ensure fair practices and protect the integrity of the workplace.
