• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Can an employer take employee tips to balance a drawer?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Jean B

Junior Member
State: Colorado

I work in a new small business where all employees are paid the server minimum (5.29) and tips. We use the tip pooling system, in which all tips are counted at the end of the night, then split among employees based on hours worked.
This is very common. However, there is an extra step that is new to me, and doesn't feel right. If the drawer is short, the difference is taken from the tip pool before being distributed.
I am about to take on a management position, which would make this my job.
My employer is a new business owner, and good person. I just don't want either of us to get in trouble, and I don't like the idea of taking money from my co-workers.
Is it legal for us to do this?

Thank you!
 


tranquility

Senior Member
I did not do a case search. From a superficial knowledge (Based on reading a lot of cases on this.) that is not correct.

But, see an attorney. Even if there is a clear case, you still have to litigate the matter. The litigation will be subtle and hard.
 

FlyingRon

Senior Member
It is 100% illegal to not distribute the tip pool to employees. Further it is also illegal that you $5.29 min wage PLUS the tips received don't bring you up to the state $8.13. Further, it's illegal for the employer to do anything but directly hand over the tips unless he has required with the state posting laws as to this.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top