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tipping out kitchen

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  • tipping out kitchen

    Aloha, I have been the FOH manager in a well established restaurant for the last 6 yrs. Recently the owner has demoted me in a very public meeting and wants to cut my pay as well as the other supervisors on staff to $7 an hour. She has hired someone else to take over my position as FOH and I am to train her. To add more salt to the wound, we are instructed to come up with a new tip structure to replace the current tip out. The reason behind this is the kitchen needs raises and the owner feels it should not have to come from her. We currently tip out 25% (10-bar/10-hostbus/5-kitchen) We give the kitchen 5% of all our creditcard tips. They get cash, we get taxed on our paychecks for it. The guidlines for the new structure is, the waiters must now tip the management out to compensate the loss of pay, and the kitchen needs another increase as they also need raises again and she feels she should not have to pay. Also, we are all waiters as well and would be adding to our own tip outs. Does anyone have any advice? Please help.

  • #2
    The law does not preclude the employer from implementing a tip pooling arrangement, but not to those employees who are not "regularly and customarily tipped". The fact sheet here discusses those who can participate in a tip pool and those who cannot.

    Secondly, only the tips you actually NET are reportable as your wages; not your GROSS tips before tip-out. I recommend you keep a very detailed tip diary, including all the tips you receive and what you "tipped out". If your wages include the gross tips in error, you can request that the employer correct your W-2 and advise the IRS if they do not.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.