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  1. #1
    Join Date
    Apr 2017
    Posts
    1

    Default Can an Employer Set up a Tip Pool and Keep Some of the Money

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

    My employer in the past has always paid me 5$/an hour plus tips while serving. It is a small farm to plate operation that conventional serving wages don't quite work for. In hopes of attracting a new sous chef, she raised serving wages to 9$ an hour and decided to split tips with 60% going to the server and 40% going to the kitchen.

    I have no issue with sharing tips, especially if it means we are able to increase our volume by having extra kitchen help. What makes me weary, is that there is no sous chef yet so 40% of the tips are going directly to the owner/chef. Is this right? Thoughts?

    For example - tonight my tips were about $175. I walked out with $105, she kept 70. But now I also receive 54$ on a paycheck ($159 total pre-tax). Before I would have walked out with 175$ and my 30$ in hourly wages for the night would have most likely gone all to taxes.

    Is it acceptable for an owner to partake in the tip pool? Does it even matter since I am being paid the normal minimum wage?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Can an Employer Set up a Tip Pool and Keep Some of the Money

    If the employer is keeping the money that is ostensibly for a sous chef who has not been hired then, no, that is not permitted.

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