Deductions from Employee Pay for Unpaid Customer Checks
My question involves labor and employment law for the state of: Virginia
I was not sure what should happen in this situation.
If a customer at a restaurant leaves without paying for his/her bill. Does the employer have the right to make the waitress of that table to pay for the check?
And
Is it mandatory for the employer to add gratuity to a bill over XXX amount of money?
Thanks for your help!
Re: Employee Pay for Open Checks?
Quote:
If a customer at a restaurant leaves without paying for his/her bill. Does the employer have the right to make the waitress of that table to pay for the check?
I will have to look but I do not believe this is allowed. If CGB or one of the other HR folks stops by they would be better suited to answer this.
Quote:
Is it mandatory for the employer to add gratuity to a bill over XXX amount of money?
No. If a charge is mandatory, it is no longer a gratuity but becomes a service charge and is treated differently.
Re: Employee Pay for Open Checks?
Quote:
Quoting
dtiao7eb
My question involves labor and employment law for the state of: Virginia
I was not sure what should happen in this situation.
If a customer at a restaurant leaves without paying for his/her bill. Does the employer have the right to make the waitress of that table to pay for the check?
NO! Theft, and a monetary remedy, can never be imputed to an employee under such facts.
Quote:
And
Is it mandatory for the employer to add gratuity to a bill over XXX amount of money?
Thanks for your help!
Usually a waitresses makes about 1/3 of minimum wage, by law, and the rest must be made up either from tips, which generally suffice, OR the employer is obligated.
As long as the state minimum is satisfied, unless to confrom to some sort of internal tip agreement, I seriously doubt any law mandates an employer to do so, regardless of the size of the check.
Re: Employee Pay for Open Checks?
I figured there was no "mandatory gratuity"
but about the first question:
What if the employer has stated in the employment contract that the Employee will be responsible for any open checks?
Re: Employee Pay for Open Checks?
Quote:
C. No employer shall withhold any part of the wages or salaries of any employee except for payroll, wage or withholding taxes or in accordance with law, without the written and signed authorization of the employee. An employer, upon request of his employee, shall furnish the latter a written statement of the gross wages earned by the employee during any pay period and the amount and purpose of any deductions therefrom.
Quote:
D. No employer shall require any employee, except executive personnel, to sign any contract or agreement which provides for the forfeiture of the employee's wages for time worked as a condition of employment or the continuance therein, except as otherwise provided by law.
Quote:
E. An employer who willfully and with intent to defraud fails or refuses to pay wages in accordance with this section is guilty of a Class 1 misdemeanor if the value of the wages earned and not paid by the employer is less than $10,000 and is guilty of a Class 6 felony if the value of the wages earned and not paid is $10,000 or more or, regardless of the value of the wages earned and not paid, if the conviction is a second or subsequent conviction under this section. For purposes of this section, the determination as to the "value of the wages earned" shall be made by combining all wages the employer failed or refused to pay pursuant to this section.
it doesn't appear the clause is legal or enforcable.
Re: Employee Pay for Open Checks?
Quote:
Quoting
jk
it doesn't appear the clause is legal or enforcable.
Excellent citations jk!!
EVEN if statutory law did not prohibit it, such employment contract would be unenforceable.
It is like mandating a bank employee pay back money when they get robbed??
The main point here, and this was the posters concern, many employees think just because it a company policy, whether signed/acknowleged by the employee or not, it is LAW and they have to pay it back, ergo, the employer wins.
dtiao7eb had a genuine concern and I think you/we cleared it up.
Re: Employee Pay for Open Checks?
:thanks JK that really clears things up !!!
thanks everyone for their quick responses!!!
:D
Re: Employee Pay for Open Checks?
Under federal labor law a tipped employeed is said to be earning minimum wage when paid tipped wages, usually $2.13 per hr, maybe more in some states. Hence, any deduction from this $2.13 is considered a minimum wage violation, regardless the amount of tips received.
See this link below on page 2 under "Typical problems" (illegal deductions for walk-outs).
http://www.dol.gov/esa/whd/regs/compliance/whdfs15.pdf