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Employer Taking Cash Tips To Pay For Restaurant Expenses

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Jamesjoeb

Junior Member
What is the name of your state (only U.S. law)? California

Hello, I’m currently a server for a restaurant in Los Angeles, California. The practice of tipping out support staff (bartenders and bussers) is common practice in theindustry and the law has guidelines for these. In California I believe the law states the staff can decide what they want to tip out and managers are allowed to enforce the agreed upon percentages. It all seems fairly vague and generally managers stay away from the subject and disputes between employees for this reason. At the place I'm currently employed managers were asking servers to give 2 dollars for every hour they worked and label the envelope "kitchen". When they were asked what the money was for when we were told to give the money was "to help out the guys in the kitchen." Everyone acquiesced because the guys in the kitchen work very hard and do a good job. I later found out that this cash my employers were taking was actually being used by the company to pay for uniforms and equipment for our kitchen staff. Stuff like chef's shirts, pants and shoes. This seemed illegal that employers would tell us we had to give up cash at the end of every shift to pay for general restaurant expenses under the guise that we were sharing with kitchen staff. Is this illegal and if so what agency would I report it to? Across the entire server staff this would amount to tens of thousands of dollars. Any more info on the subject would be very helpful! Thank you so much!
 


davew128

Senior Member
IIRC (from long conversations with a client is a server at a restaurant), back staff are NOT supposed to be receiving parts of the tips, and it falls under federal labor laws. That said, the area is so rife with abuse from non-caring or scumbag employers than nobody makes an issue of it for fear of losing their jobs.
 

justalayman

Senior Member
regardless of whether you could be required to share your tips with kitchen staff (you can't be) what they are doing is even worse; the company is benefiting from the tips paid by the waitstaff. That isn't even questionable. It is blatantly improper.


You report this to the Division of Labor Standards Enforcement (DLSE)
 

Jamesjoeb

Junior Member
IIRC (from long conversations with a client is a server at a restaurant), back staff are NOT supposed to be receiving parts of the tips, and it falls under federal labor laws. That said, the area is so rife with abuse from non-caring or scumbag employers than nobody makes an issue of it for fear of losing their jobs.
Thank you so much for the confirmation, you as well as the person below this, I really appreciate it.
 

commentator

Senior Member
Just remember, you do NOT have to tell anybody you're going to do this, to share your indignation with your co- workers, etc. The Wage and Hour division if they come in and investigate, they are NOT going to tell the employer which employee called them. So if you don't say, no one will know and they probably won't fire you personally. If they do, you can file for unemployment, but that's all. It's not illegal for them to fire you for calling the DOL even if what they are doing is very illegal and bad and wrong.
 

cbg

I'm a Northern Girl
It's not illegal for them to fire you for calling the DOL even if what they are doing is very illegal and bad and wrong.

Well, actually, it is. At least in states with a public policy provision. Which the OP's does.
 

commentator

Senior Member
Gosh, I love those pro employee states! Around here, I've seen so many people be out on heads at a whim with no protections! But most people who turn in their employers get in trouble because they also find it necessary to share what they are doing with everyone else around them. Just sayin'.
 

cbg

I'm a Northern Girl
Won't argue with that. An employer can always find a legal way to let someone go.
 

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