Is my employer violating the law by using tip pool money to pay floaters?

Get Legal Help Today

 Secured with SHA-256 Encryption

Is my employer violating the law by using tip pool money to pay floaters?

We have a position called a “floater” at our restaurant that mostly fills in as needed between the host stand and the expo line. However, they also oversee our sidework at the end of our shift before we are allowed to check out, assign our sections, hold access codes for altering checks, and generally direct our day to day operations. This position shares tips from the our tip out to the back of the house. It seems to me they are “agents” of the employer and this is illegal under CA Labor Code Section 350 and 351.

Asked on April 11, 2011 under Employment Labor Law, California

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Well this is arguable of whether or not they are considered an agent of a floater or if they are actually W2 employees. A w2 employee can also be an agent of an employee and how they are compensated will depend on whether the labor commission in California has ruled upon this issue before. You should consider at least inquiring with the labor commission, but if your tip pool negatively impacts you in that you don't get tips, then no matter what set up is allowed, if you are not gaining the benefit of the tip pool as you would have without this person, then you absolutely need to inform the labor commission and keep an accounting of your tips.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption