HR1815
09-26-2005, 08:39 PM
I have a two part question.
Can a Kentucky Employer claim tips for an employee? I have a family member that works in the service industry and tells me that he never claims tips, his employer does that for him. When I look at his pay stubs, the tips that are claimed are WAY too high for what he is actually making.
This same family member is payed $2.13 an hour for serving tables. I know that is minimum wage for a tipped employee. However, they also have him do duties after his shift, that non-tipped kitchen employees should do. Is this legal?
Pattymd
09-27-2005, 05:19 AM
Why doesn't this employee claim tips? If the employee doesn't claim enough to make up the difference between the minimum wage and the subminimum wage, the employer must pay the employee the difference.
And it is legal for a tipped employee to do "non-tipped" work.
HR1815
09-27-2005, 10:13 AM
See that's the thing, it's a small buisness and the employer just automatically claims the tips for them. He's only 17 and it's his first job, so he doesn't know any better. I just happened to help him get another job somewhere else because some nights he was 9-11 bucks a night. Somehow he had $185.00 claimed on his paycheck. He says there's no way he made that much money in one week. I feel like he's getting cheated. I know he's kind of a pushover and would do anything you asked him to, so that's probably why the employer is saving on labor by paying him $2.13 an hour to clean dishes and the kitchen.
Pattymd
09-27-2005, 12:59 PM
See, here's the deal. In order for an employer to pay a directly-tipped employee the subminimum wage, the employee must be "regularly and customarily" tipped. If the employee does not declare enough tips to make up the difference in pay to minimum wage, the employer must make it up. So, if he did not claim ANY tips, the employer still had to pay minimum wage, calculated on a weekly basis. He apparently just reported it as tips. However, it is also the employer's responsibility to explain this to the employee.
Plus, you can read about allocated tips here:
http://www.irs.gov/taxtopics/tc761.html
However, if you think your son has not been paid properly, he can always file a claim with the state Dept. of Labor, who will investigate and order back pay if applicable.
