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Thread: Tip out laws South Carolina

  1. #1
    Junior Member
    Join Date
    May 2010

    Default Tip out laws South Carolina

    I have a job that I enjoy waiting tables. I have done this work for years and have had issues but never one such as this. My employer takes 4% of our daily total sales to tip out food runner, host, bar,and CreditCard charge...1% to each. Although I would rather tip bar only on beverage sales and host and food runner only on food sales...and only pay the 1% to actual cc charges and not the cash payments also I haven't complained.

    Recently the restaraunt has stopped providing us with food runners in order to save money and yesterday the host was nowhere to be found either. I finally asked the management if it was really neccessary to keep tipping out people who weren't there. Over the past week I have given 45.00 of my tips to a food runner who wasn't there. Management explained to me that sometimes we just have to do what is expected of us without complaining and good things will come back to us "like she tells her children" well I am a 30 year old woman and that got me a little upset but I bit my tounge and continued to listen to her compare it to you may not know where the money is going but its doing good for the restaraunt and in the long run I would get that money back 10 fold and we were a family around there.

    I like the mom and pop atmosphere and the owner and staff...even this manager is a great person, but this whole situation makes me uncomfortable. I need some written proof of a law that this is wrong and I know there must be something.

  2. #2
    Super Moderator
    Join Date
    Jun 2006


    This is maybe complicated. I will cite the key federal law (FLSA) rules. The problem is the "customary and reasonable" language. Federal law basically allows state courts and administrators to decide what is "customary and reasonable". This could be different for different types of tipped employment. And I have no idea how your state has called this in the past.

    Tip Pooling: The requirement that an employee must retain all tips does not preclude a valid tip pooling or sharing arrangement among employees who customarily and regularly receive tips, such as waiters, waitresses, bellhops, counter personnel (who serve customers), busboys/girls and service bartenders. Tipped employees may not be required to share their tips with employees who have not customarily and regularly participated in tip pooling arrangements, such as dishwashers, cooks, chefs, and janitors. Only those tips that are in excess of tips used for the tip credit may be taken for a pool. Tipped employees cannot be required to contribute a greater percentage of their tips than is customary and reasonable.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

  3. #3
    Senior Member
    Join Date
    Jul 2005


    You aren't "family", you're an employee. I don't know of any law that would prohibit your being required to contribute to a tip pool that is distributed as management determines, however, unfair it may be. As long as the percentage is "reasonable and customary" as DAW already stated.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

  4. #4


    Sorry to butt in here - but is the management allowed to actually take the share of her tips and keep it for the business as opposed to actually distributing it to other workers such as bartender or the funner? Since they don't have the food runner anymore either it sounds to me like they are just taking her tips and not contributing it to any tippool. Sounds fishy to me but then again, it might not be against any law...

  5. #5
    Senior Member
    Join Date
    Jul 2005


    No. If you look at the fact sheet DAW provided under Retention of Tips, it does talk about tip pools. But this is not a tip pool for this particulat position; therefore you cannot be required to contribute from your tips when they are not being distributed elsewhere. Contact the state DOL.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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