Tips on Tips

If you are in a service industry and regularly receive tips from customers are patrons, California has a number of rules to protect your right to those tips.

  • Your employer cannot count your tips against your hourly rate.  Although some other states allow an employer to pay an employee less if tips make up the difference, that practice is illegal in California.
  • Your employer cannot deduct credit card processing fees from your tips.  If a patron pays by credit card, you are entitled to the amount they put as a tip.  Any processing fees must be paid by the restaurant.
  • Your employer cannot take your tips or deduct them from your wages.
  • However, tip pooling is a legal practice, so long as the persons in the pool are directly servicing the customers and are the type who would normally receive tips in that industry.
  • Managers and Owners may not be included in a tip pool.  You and your fellow employees earned the tips and are entitled to receive them without paying any fee or cut to the company itself.
  • No matter how much you make in tips, your employer must still pay you at least the California Minimum Wage.

If you have any questions or feel your employer has violated one of these rules, contact Aegis Law Firm today!