Can an employer pay employees a regular pay of minimum wage or higher and keep the tips for himself?

Asked on June 30, 2012 under Employment Labor Law, Texas


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Whether or not the employer may keep the tips of his employees while paying the employees at least the minumum hourly wage depends upon what is stated in the employee employer hand book at work assuming there is one.

If such is stated, then the employer can keep the tips for himself. However, from a business perspective such is a bad decision in that many employees work for minimum wage with the expectation to make extra money on tips.


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