Can an employer keep half of your credit card tips?

UPDATED: Oct 1, 2022

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Can an employer keep half of your credit card tips?

My Employer says I get 100 of the cash tips
split amongst the 2 other employees. The issue
I’m having is that she says she keeps 50 of
the credit card tips and the other 50 gets
split amongst the other employees. This happens
whether she worked that day or not. Then she
holds onto the credit card tips until we ask
for them, then hands us cash. Is this leagal?
Do I need to contact Dept of Labor?

Asked on January 31, 2019 under Employment Labor Law, Arizona


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

It doesn't matter how tips are paid--cash or credit card: they belong to the employees, not the employer. Your employer must turn over all the tips, including all the credit card tips, to employees. If she won't, then yes--you could file a complaint with the department of labor.

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