PDA

View Full Version : DISCLOSURE OF THOSE INVOLVED IN TIP POOLS California


BROKENDOLL
01-10-2009, 12:52 PM
I've been a server at the private country club I work at for over 5 years. We've always had a tip pool that was actually funded by the service charges on each check. Servers recieved a higher percentage than ther busboys and bartenders, but there were never any complaints until this season. Prior to this season, each pay period we were presented with a tip sheet along with our paychecks. That way, you could see the amount and who recived tips for a certain day. Not suprisingly, you would find an occassional error or oversight, and it would be brought to someone's attention for correction. Our Executive Chef decided this year to take on the duries of Food and Beverge Manager on top of his chef duties, as well as hiring an Events Coordinator and personal assistant. We were also told that we would no longer be getting the sheet imforming us of the dispersment of our tips as a group, but could inquire individually. His theory was because it was no one's business what another made. (Up until this year, all servers recieved the same amount, and busboys and bartenders as well, according to the particular shift.) Many of us found this odd considering it was to remain equal.

Now we're into our second month and due to the bad economy, many of us have had our hours cut, and tips are expected to be somewhat lower. Unfortunately, tips are alot lower and rumors are that the Events Coordinator/ Supervisor has been added to the pool. I don't believe she has the authority to hire or fire, but she is in a postion to over see and supervise the staff working the event.

On our last pay period, many of us were very unhappy and sceptical over the drastic change in our incomes and tip amounts. Some wondered if perhaps they had been forgotten when the tip pool was made each nite. It makes for a very unmotivated atmosphere when everybody begins to not care anymore about how well they do their job, not to mention the negativity amongst those who were teamplayers before this change. I happen to be one that isn't afraiid to speak on behalf of myself, nor let something go that isn't right, or affects my work performance and surroundings.

We happened to have an event afew weeks ago with the coordinator in charge. At one point the staff was imformed they were to stay off the floor while the a speaker made their speech.We were told this would take approximately 10-15 minutes. I confirmed this with the supervisor, but couldn't find her when I wanted to take a quick restroom break. I did in fact notify atleast 3 other staff members of where I would be. I went to use the restroom only to find it in use, so I went to our break area and took afew hits of a cigarette until my turn. Moments later, a staff meber comes in a panic saying the supervisor is angry and wanting to know where the hell I am. I hurried up to the diningroom wondering why no one simply told her, as well as wondering what I did that was so wrong. One member wanted a refill of coffe, yet 4-5 other staff members, including the supervisor stood around refusing to take care of that.

A short time later, I am called into the Chef's office where I am being written up for not notifying the supervisor, as well as taking a cigarette break. I explained the situation about taking a hit off a cigarette, but that my main objective was to use the restroom. The Chef insisted I sign the warning as it was written and I refused. I told him I realized I shouldn't have depended on co-workers to cover for me, but I would not be accused of sneaking to smoke as he wrote it on the warning. Of course one thing led to another, and the subject of our tip pool came up. I tried explaining the anomosity it was creating in a place that normally has a team feel to it. I pointed out how everyone should be getting paid equally so seeing it in print shouldn't matter. I was flat out told that the distribution of our tips was not my business and there would be no further discussion. I asked for a copy of the warning that was written and explained that I wanted to show it to an attorney in regards to my rights. That may have been the wrong thing to do I'm afraid because since then, my hours have been virtually cut from almost 30 hours per week to maybe 15-20. They've actually scheduled less hours for me than a new employee with less experience, as well as verbally imformed me that my health insurnce was at stake. I went in as scheduled the other day, only to find that I was on the clock less than 2 hours. (This is after driving over 25 miles to get to work.)

I apologize for the extreme length of this first post, and I probably wouldn't post in this forum if I truly didn't feel that something very fishy is going on at my workplace. Everybody is still upset and rumors are flying, but noone wants to risk their job. From dishwashers to bartenders, the word is the Chef sure has it made while we're all suffering the consequences of his new plan. Word also has it and I verbally heard it last night, but the Events coordinator/supervisor is indeed in on our tip pool, yet doesn't do anything more than perhaps say hello to the guest until someone seats them.

The worst part of this new season is the fact that my unemployment checks over the summer were actually about the same as the working checks are so far. And with as many different events and schedule changes, not to mention the "Chiefs VS Indians", I personally would like to see the tipsheet in order to find any errors that may be happening that are causing this turmoil in what used to be agreat place to work. Do we, as servers, have the right to see who is involved in our tip pool, and if so, what is the best way to confront the system about their illegal actions without feeling anymore retaliated against than I already am? Thank you for allowing me to vent with hopes for a solution. After 5 years, I'd hate to think it was time to go jobhunting again...

DAW
01-10-2009, 02:11 PM
I am going to include a pointer to the federal rules on tips. One problem with very long postings with many issues such as yours is that I am left really unsure just exactly what the question I was supposed to answer was. I am going to pick out one particular point, although I will suggest that you should read the federal fact sheet in it's entirety.

Service Charges: A compulsory charge for service, for example, 15 percent of the bill, is not a tip. Such charges are part of the employer's gross receipts. Where service charges are imposed and the employee receives no tips, the employer must pay the entire minimum wage and overtime required by the Act.

BROKENDOLL
01-10-2009, 03:23 PM
I am going to include a pointer to the federal rules on tips. One problem with very long postings with many issues such as yours is that I am left really unsure just exactly what the question I was supposed to answer was. I am going to pick out one particular point, although I will suggest that you should read the federal fact sheet in it's entirety. Thanks for taking the time to read my post, DAW. Once again, I apologize for it's length. I've actually spent the past week or so educating myself to more than I expected, one lesson being the federal law in regards to tipping. To say the least, it took the wind out of my sails knowing that the service charge that we all had been working hard for and splitting fairly before, is legally benefitting those that don't actually provide any actual table service. Seeing as the Chef took on more responsibility, then hired an assistant chef and events coordinator to basically cover those responsibilities, I imagine they have to be paid somehow in this otherwise declining economy. Do we atleast have a right to see how the service charge is being distributed, since they are afterall giving us some of the so-called tips? I ask because he's giving everybody the impression that he's hiding something and using his authority to assure it stays that way. I have afew more inquiries, but one thing at a time, right? :rolleyes::)

DAW
01-10-2009, 05:36 PM
The problem is that federal law (FLSA) does not consider service charges to be tips. I understand that you feel that service charges should be considered tips and follow the tips rules but that is not how the laws are currently worded. The fact sheet on tips does a pretty good job of discussing the rules. There are other sources with more information (the actual FLSA law, the regulations, and the federal DOL handbook but none of these source will say what you want the law to say. Under law, "service charges" are not tips, the employer does not have a legal obligation to give them to employees at all, much less in the manner the employees want.

BROKENDOLL
01-10-2009, 11:56 PM
The problem is that federal law (FLSA) does not consider service charges to be tips. I understand that you feel that service charges should be considered tips and follow the tips rules but that is not how the laws are currently worded. The fact sheet on tips does a pretty good job of discussing the rules. There are other sources with more information (the actual FLSA law, the regulations, and the federal DOL handbook but none of these source will say what you want the law to say. Under law, "service charges" are not tips, the employer does not have a legal obligation to give them to employees at all, much less in the manner the employees want. I totally understand, DAW. A week ago I was on a mission and began my "education" in labor laws, only to learn the things you've told me so far. I guess I was hopin' maybe there was something I hadn't seen or read yet. I still think this Chef/F&B manager should perhaps call a meeting and honestly explain his new tactic and approach to the season instead of allowing disgruntled employees to continue speculating, guessing, and fostering a negative work atmosphere. I know the club is owned by the members themselves, and they spent alot of money (65,000)enhancing the clubhouse with new flatware, table linens, and decor. I can understand keeping an eye on overtime hours, and unnecessary payroll excess, as well as the economy having an effect. But, they could atleast make us more aware of their plan instead of making the people who make up the backbone of the clubhouse feel like they're being cheated. Seriously, I've never worked anywhere where you could nearly cut the air with a knife before, and I cetainly never expected from the place that I've patiently climbed a ladder at for the past 5 years. Thanks again DAW! I'll be back with my nose in those labor law references you recommended ...:rolleyes:

Worriedspouse
01-11-2009, 12:27 AM
From the DLSE manual:

19.3.5 Service Charge Is Not A Gratuity. A charge which must be paid added to a
customer’s bill for the service is not a gratuity and may be received and disbursed by
the employer without limit by Labor Code § 351m et seq. (O.L. 1994.01.07 and
2000.11.02). On the other hand, if the “service charge” or “added gratuity” is waivable
or negotiable, or couched in terms of being less than a fixed amount which must be
paid, the charge is not an added “charge” to the bill and payment is gratuitious.

You should see how this service charge is worded and applied to the members. If some members are able to have it waived or reduced, it can't be deemed a service charge. It must be equally enforced on all patrons. If it's not, then it becomes a gratuity and any person in a supervisory position may not share in a tip pool. Again from the DLSE manual:

19.3 Statute Prohibits Employers Or Their Agents From Taking Or Receiving Tip
Money Left For Employee. Section 351 prohibits employers and their agents (defined,
above, as every person other than the employer having the authority to hire or discharge
any employee or supervise, direct, or control the acts of employees) from
sharing in or keeping any portion of a gratuity left for or given to one or more
employees by a patron.

BROKENDOLL
01-11-2009, 04:48 AM
From the DLSE manual:

19.3.5 Service Charge Is Not A Gratuity. A charge which must be paid added to a
customer’s bill for the service is not a gratuity and may be received and disbursed by
the employer without limit by Labor Code § 351m et seq. (O.L. 1994.01.07 and
2000.11.02). On the other hand, if the “service charge” or “added gratuity” is waivable
or negotiable, or couched in terms of being less than a fixed amount which must be
paid, the charge is not an added “charge” to the bill and payment is gratuitious.

You should see how this service charge is worded and applied to the members. If some members are able to have it waived or reduced, it can't be deemed a service charge. It must be equally enforced on all patrons. If it's not, then it becomes a gratuity and any person in a supervisory position may not share in a tip pool. Again from the DLSE manual:

19.3 Statute Prohibits Employers Or Their Agents From Taking Or Receiving Tip
Money Left For Employee. Section 351 prohibits employers and their agents (defined,
above, as every person other than the employer having the authority to hire or discharge
any employee or supervise, direct, or control the acts of employees) from
sharing in or keeping any portion of a gratuity left for or given to one or more
employees by a patron. Thanks worriedspouse. I'm still educating myself here, but that bit of imfo helped alot. I know the members are under the impression that the service charge goes to the servers. (It has for as long as I've been there. I also recall the chef imforming us that we are not to accept any cash from a member and could be written up if we do so.) I'm just alittle concerned about having even more hours cut from my schedule for being a thorn in the Chef's side. I found out tonite that he also revised the original amount of hours required to recieve health insurance benefits. At the start of the season, the club made adjustments to the plan that only required 30 hours per week to get the benefits. Now, apparently, you must have 32 hours per week to qualify. With the amount of hours they've cut since that prior issue over the writeup I refused to sign, I'm expecting my insurance benefits to be cancelled soon. Not a happy camper, that's for sure! Thanks for the support though!

California Labor Law Posters
Comply with California regulations with one Complete California Labor Law Poster.
Trusted with customer satisfication.
Call (800) 745-9970 or shop online at www.LaborLawCenter.com.