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Employer requires we leave 50% of our tip to cover expenses. Oregon

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  • Employer requires we leave 50% of our tip to cover expenses. Oregon

    I just started driving for this company and up front they said that we get to keep 1/2 of our tip. The other half is for the company to cover vehicle expenses such as gas and items to stock the vehicle. This is my first experience in this industry. Another new driver said that they have never had to share their tips and always got to keep all of it. The driver also said that they can't legally keep our tips. Is this true? Can they do that?
    Last edited by limo driver13; 11-13-2011, 07:51 PM. Reason: added info

  • #2
    Probably not legal.

    http://www.dol.gov/whd/regs/compliance/whdfs15.htm

    Tipped employees are those who customarily and regularly receive more than $30 per month in tips. Tips are the property of the employee. The employer is prohibited from using an employee’s tips for any reason other than as a credit against its minimum wage obligation to the employee (“tip credit”) or in furtherance of a valid tip pool. Only tips actually received by the employee may be counted in determining whether the employee is a tipped employee and in applying the tip credit.

    Retention of Tips: A tip is the sole property of the tipped employee regardless of whether the employer takes a tip credit. The FLSA prohibits any arrangement between the employer and the tipped employee whereby any part of the tip received becomes the property of the employer. For example, even where a tipped employee receives at least $7.25 per hour in wages directly from the employer, the employee may not be required to turn over his or her tips to the employer.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      Thank you for the info

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      • #4
        You ARE new at this...

        Sooo, how is he going to know how much you made in tips,
        if you don't tell him?
        .._________________
        ~ Nothing is foolproof,
        to a sufficiently motivated fool.~ Benjamin Franklin

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        • #5
          It's an honor system for now, but they do follow up calls if the tip seems unusually low compared to tips received in the past.

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          • #6
            Das ist in der Doktor!

            Originally posted by limo driver13 View Post
            It's an honor system for now, but they do follow up calls if the tip seems unusually low compared to tips received in the past.
            Honor system?
            Well, that takes the cake!
            You know it's been said,
            there is no honor among thieves.
            So if it turns out he's steeling from you,
            I'd start looking for another job.
            Good Luck.
            .._______________
            ~ Helping rid the world of stupidity,
            …starting with my own.

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