Can a manager include himself in the “tip jar”?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a manager include himself in the “tip jar”?
Owner’s son/manager is salary paid and does little work at all but still takes a 3rd of tips from tip jar. His mother and father do not take any. I don’t know if there is any law(s) concerning this since the other employee and myself make minimum wage and he is on salary.
Asked on July 1, 2011 under Employment Labor Law, North Carolina
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
This is an interesting and ever changing topic. Tip pooling arrangements (between servers, busboys, kitchen staff) are not usually considered a violation of the Fair Labor Standards Act as long as the minimum wage requirements are met, and this may be the same in North Carolina. As to the manager taking the tip, the issue becomes whether the owner (by so taking the third) is taking from a pot of monies that belong to the company or to those who actually did the serving and like. The U.S. Department of Labor talks about tip pooling as not being illegal if it is shared between those who customarily and regularly receive tips. You are not required to share with those who do not customarily and regularly receive tips. So your best bet is to contact your state's labor department and U.S. Department of Labor and file an inquiry or make an anonymous inquiry.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.