California Law Regarding Tips
California has specific laws concerning tips and gratuities that control what employers can and cannot do with their employees’ tips. These laws also grant rights that employees and their tips. As outlined in the state’s Labor Code Section 351, employers are prohibited from sharing or keeping any part of an employee’s tip or gratuity.
Other People Are Reading
-
Credit Card Tips
-
According to Code Section 351 of California law, a tip or gratuity made by a customer using a credit card must be paid to the employee by the next regular payday. California law also prohibits employers from passing any credit card processing fees or costs they may incur to their employee’s tips. Employers must pay their wait staff the full amount of the tip indicated by a customer using a credit card.
Tip Pooling
-
California permits involuntary tip pooling inn which tips from wait staff are shared with other staff who provide a service in the restaurant. According to the Division of Labor Standards Enforcement, when an employer requires tip pooling, tips are only to be distributed among employees who provide “direct table service.” This includes waiters, waitresses, busboys, bartenders, hosts and hostesses and a maitre d'. Employees who should not be part of the tip pool include dishwashers, cooks and chefs, save for those who prepare food at the customer’s tables. The same goes for employers, managers and supervisors, even if they provide direct table service.
-
Employee Protections
-
Under California’s Labor Code Section 351, employers are prohibited from taking an employee’s tips and cannot credit tips against an employee’s wages. Under federal law, employers in California cannot use an employee’s tips as credit toward wage to meet minimum wage. State law requires employees be paid at least minimum wage plus any tips. If an employer is crediting tips toward wages, employees can file a wage claim with the state’s Division of Labor Standards Enforcement or can file a lawsuit against the employer for lost wages.
Mandatory Service Charges
-
California regards voluntary tips to differ from mandatory services charges that customers are required to pay. An example of a mandatory service charge is the 15 percent charge on top of the bill for the cost of a banquet. Those charges are considered owed to the business and are not considered gratuities that are voluntarily left for employees. At an employer's discretion, he can distribute all or part of the charge to employees, which would be considered a bonus.
-
References
Resources
- Photo Credit beer and coffe image by forca from Fotolia.com
