What are Tennessee laws for credit card tips

My employer is stating that if we receive a
credit card tip that is over 50 of the tab
that we are not allowed to accept that tip at
all. I am wanting to know what my rights are in
what the company’s rights are

Asked on October 12, 2017 under Employment Labor Law, Tennessee

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, there is NO law restricting the size of the tip, whether by cash, credit card, or othewise. Whatever the tip was, it goes to the tippable employees. HOWEVER, the company can have its own policy barring large tips; if it does, while you should get the tip was was given, unless you had a written employment contract preventing discpline for this reason, the employer could suspend or terminate you, reduce your shifts or hours, etc. for violating their policy; companies may have policies that go beyond the law's requirements, so while they can't take the big tip you got away from you, they can still take action after that if you breached their rules.


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