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Have You been Forced to Share your Tips with Management?



TipsAn investigation has begun into possible class action lawsuits regarding the improper business practice of pooling tips and allowing management, including shift supervisors, to share in the pool.

Such practice often violates state law as well as hurts employees. If you believe that you have been a victim of this practice, please contact a lawyer as soon as possible to determine if you are eligible to join a class action lawsuit. In order to best evaluate your situation, please be prepared to provide your dates of employment and the titles/roles of the management personnel who received money from the tip pools.

Tip Sharing Articles

Here's a Tip... Managers Shouldn't be Sharing Them With Servers
A ruling this month governing the hospitality industry in New York could have a sweeping effect as to just what is a service charge, and what is a tip. And for management sharing tips, the ruling could spell an end to that practice. Here's the scoop, or the tip if you will...

Tip Sharing Lawsuits Investigated
It is no secret that many people who work in the food service industry rely on tips to supplement their often meager wages. In some states, where it is legal for restaurant owners to pay less than minimum wage, those workers depend very heavily on their tips to make a living. However, many restaurants and other food service establishments require their employees to share tips with workers who are actually considered management. Employees at these restaurants are investigating lawsuits against their employers, alleging that forced tip sharing with management violates labor codes.

Forced Tip Sharing in the News

Management Forced Tip Sharing Legal Help

If you have been forced by management to share your tips, please fill in our form on the right to send your complaint to a lawyer to evaluate your claim at no cost or obligation.
Last updated April 29 2008

Reader Comments


Posted by

on
I had to pay taxes on all tips shared. Bartenders also waited on tables, collected tips from tables and the bar and did not claim any tips while not required to share their tips. My tip shares came from total sales before taxes and not broken down. (alcohol sales,food sales etc...)

Posted by

on
Am told by management that this 10% deduction is "shared" by bar, hostess and dishwasher. I understand about sharing with front-of-house employees, but have never heard of sharing with back-of-house (dishwasher). Furthermore, I have no idea if these employees even receive this money.

Posted by

on
I am a waitress at a Japanese resturant. I am forced to tip 5% of my credit card tips, 18% to the sushi chef, 6% to the busser and what is left; I have to share 50% with the hibachi chef. They are not required to share with us, but we have to share with them. Even if we do not recieve a tip from a table; we still have to tip out. Example: Saturday night before tip out I made 226.25. After tip out; I made 106.00.

Posted by

on
Last instance, tip over the two night banquet was about $342.00. I received only $155.00 of that on my check. This is just one instance, there are been numerous over the three years I have worked at this restaurant. This one was the last straw.

Posted by

on
I am a employee of Longhorn, which as you know has to tip out 2.25 percent of "sales". My problem with this is not only the high percentage, but also the fact that after the "server assistant" has left we are forced to share tip out. Management refuses to pay these employees due to labor cost and sends them home before closing. My question to you is, if Management doesn't want to pay them why should I have to pick up the slack? I am not the employer.

Posted by

on
I wondered if this practice is legal. The owner waits tables but doesn't do an equal amount of work. The sushi and teppan yaki chefs are paid significantly more than us; they are salaried employees. They do not have to share their tips if they are given to them directly, the waitresses all have to share our tips. We make minimum wage. The owner of the restaurant is the one responsible for these policies. She also requires that we split tips (equally) with her when she waits on tables. She doesn't do the same amount of work that we do (during a usual shift).

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