This is about something happening to someone in Alabama.
He works for a country club, where he serves at tables. On each bill he hands out, there is a mandatory 18 percent gratuity. Customers also often volunteer him a further tip.
However, his employer keeps all the money that the customers pay--the employer keeps the 18 percent, and the employer keeps any additional tip the customer signs for on his bill.
The employer has forbidden this employee from telling the customers about this practice.
So the customers believe they are tipping the employee, when in fact they are just handing the employer extra money.
I am wondering
--Is the employer comitting fraud?
--does the employee count as a "tipped employee" for legal purposes?
--does the employee have a claim on the money the employer has been pocketing?
-Kris
He works for a country club, where he serves at tables. On each bill he hands out, there is a mandatory 18 percent gratuity. Customers also often volunteer him a further tip.
However, his employer keeps all the money that the customers pay--the employer keeps the 18 percent, and the employer keeps any additional tip the customer signs for on his bill.
The employer has forbidden this employee from telling the customers about this practice.
So the customers believe they are tipping the employee, when in fact they are just handing the employer extra money.
I am wondering
--Is the employer comitting fraud?
--does the employee count as a "tipped employee" for legal purposes?
--does the employee have a claim on the money the employer has been pocketing?
-Kris