Results 1 to 8 of 8
  1. #1
    Join Date
    Sep 2010
    Posts
    2

    Question Tipping Problems at Work

    My question involves labor and employment law for the state of: California

    I have been working for the same restaurant for about a year now, it's the first restaurant I've worked in. For quite some time now I've realized that how we "tip out" and the tip's that are deducted and taxed on my pay check do not add up.

    First: At this restaurant the servers are only allowed to keep 45% of tips. 30% of the tips go to the sushi chef's and 25% goes to kitchen. On top of this we are still expected to tip out the buser/dishwasher. Now I've tried to change the tipping system (with the approval of my boss) and it lasted 2 days, because everyone else (besides the servers) threw a huge fit about it. Including my bosses because they work there, so they all receive a part of the tip pool.
    Now I didn't become a waitress to be giving away 65% of my tips, is there anything legally that the restaurant I work for is doing wrong?


    Also, almost every pay period I've noticed that the amount of hours I work doesn't seem to be matching what I'm being paid. I've tried to figure out whats wrong with my pay stubs and I finally looked at a payment calculator and realized with the odd way my boss does our deductions with the tips I'm being shorted between 60-100+ dollars a pay check.

    Oh, and 95% of the time no one gets paid on time. Some people don't get paid till a week after our actual pay day.


    Can any one help with advice or the legality of things?

  2. #2
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Tipping Problems at Work

    Required contributions to a tip pool are allowed under federal law, but the amounts/percentages must be "customary and reasonable". 65% sounds like it's neither.

    I was a little confused about this statement, though.
    the tip's that are deducted and taxed on my pay check do not add up
    Do you keep a daily tip diary, including your gross tips, the amount you've tipped out, and the net tips you have personally received? How do you report your retained tips to your employer?

    Are you saying you aren't being paid for all hours worked? Or is the underpayment solely a result of this tips handling?

    California requires that employers set a regular pay day and meet it. For a day or two, the hassle of filing a claim might not be worth it. For a week, absolutely it would be, especially if there is a history of late payment.

  3. #3
    Join Date
    Sep 2010
    Posts
    2

    Default Re: Tipping Problems at Work

    65% is a little insane if you ask me.
    Sorry let me clarify, the way my pay stubs are set up are like this: My total wages for the week are combined with my total tips (or a percentage off, either way the amount put down for my tips matches nothing that I have kept record of) after taking the deductions out of my check from my wages + tips, my tip amount gets subtracted back out.

    By doing this I am losing 60-100 per check because the deductions aren't matching with what is actually taken out of my check. It's pretty much a mess and has taken me a while to try and figure out what they've done to make it so screwy.

    I've actually just talked to a friend of mine who also works there, his father is a lawyer and was looking over his son's (my friend) pay stubs. He confirmed that too much is being deducted and not enough is being paid out to the employees. It has something to do with the way that my work is doing the deductions with our tips. It's really confusing.

    As far as late payment goes, it has happened almost every time since I've worked there (almost a year) that inevitably 1-4 people don't get paid on time. They'll get paid a week or more late. Also whenever my bosses issues us checks instead of cash, they bounce at least one persons check each pay period. The more I realize it the more I realize what a poorly run place it is.

  4. #4
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Tipping Problems at Work

    That's the proper payroll processing, add tips into income, deduct taxes, deduct tips (same amount) from net pay. So you're saying the tips that are being added into income are overstated, yes? Is the amount being deducted exactly the same as the amount being added to income? Are your credit card tips cashed out nightly or paid with your paycheck?

    Contact the DLSE regarding the tips issue and also the late paychecks (next time it happens).

    And keep a detailed tip diary and all your pay stubs. You'll need them to challenge the accuracy of your W-2 (which you can do with the IRS after you've received it).

  5. #5
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Tipping Problems at Work

    Quote Quoting PattyPA
    View Post
    Required contributions to a tip pool are allowed under federal law, but the amounts/percentages must be "customary and reasonable". 65% sounds like it's neither.

    .
    Patty, I was under the belief that this was not legal (from the first post):

    Including my bosses because they work there, so they all receive a part of the tip pool.
    Unless I am misunderstanding that statement. I read it that the bosses are also receiving part of the money in the tip pool.

    and if this:

    On top of this we are still expected to tip out the buser/dishwasher.
    is one and the same I think it is ok but not if the busser and dishwasher are separate people as I thought a dishwasher could not be included in a tip pool as that is not a normally tipped occupation.

    and I know that chefs and cooks, unless they prepare food at the table, cannot be included in a tip pool.


    from http://www.dir.ca.gov/dlse/faq_tipsandgratutities.htm

    I work in a large restaurant as a waiter. My employer told me that I am required to share my tips with the busboy and the bartender. Am I obligated to do this?

    A. Yes. According to a California court, Labor Code Section 351 allows involuntary tip pooling. Therefore, your employer can require that you share your tips with other staff that provide service in the restaurant. In this regard, it’s DLSE’s position that when a tip pooling arrangement if in effect, the tips are to be distributed among the employees who provide "direct table service." Such employees could conceivably include waiters and waitresses, busboys, bartenders, host/hostesses and maitre d’s. Employees who do not provide direct table service and who do not share in the tip pool include dishwashers, cooks, and chefs, except in restaurants where the chefs prepare the food at the patron’s table, in which case the chef may participate in the tip pool. Additionally, tip pooling cannot be used to compensate the owner(s), manager(s), or supervisor(s) of the business, even if these individuals should provide direct table service to a patron.

  6. #6
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Tipping Problems at Work

    jk, you're right, I didn't even address that part. However, my prior advice stands. This can be included in the discussion with the DLSE.

  7. #7
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Tipping Problems at Work

    Quote Quoting PattyPA
    View Post
    jk, you're right, I didn't even address that part. However, my prior advice stands. This can be included in the discussion with the DLSE.
    I almost felt bad posting that. I'm used to you being perfect

  8. #8
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Tipping Problems at Work

    Quote Quoting jk
    View Post
    I almost felt bad posting that. I'm used to you being perfect
    Awwwwwwwwwwww. Love you too.

    1. Sponsored Links
       

Similar Threads

  1. Banking: Tipping on Credit Cards
    By kylewbaysinger in forum Personal Finance And Investment Law
    Replies: 11
    Last Post: 04-28-2011, 11:01 AM
  2. Medical Issues: Problems Returning to Work After Pregnancy
    By teatime6 in forum Employment and Labor
    Replies: 2
    Last Post: 10-04-2010, 09:39 PM
  3. Vandalism and Mischief: Tipping Over a Vespa
    By mireiwyr in forum Criminal Charges
    Replies: 1
    Last Post: 07-08-2008, 09:32 PM
  4. Defamation: Problems with People from Work
    By yahoo in forum Defamation, Slander And Libel
    Replies: 2
    Last Post: 07-09-2006, 12:03 PM
  5. Disability Benefits: Problems with Getting Work
    By Shockmeman in forum Social Security Law
    Replies: 4
    Last Post: 01-11-2006, 01:35 AM
 
 
Sponsored Links

Legal Help, Information and Resources