Tip pooling

[Paul Pecott]

My daughter had a job this summer where they had her sign a statement for tip pooling. She was 16 years old at the time. The owners pooled the tips and are not giving out the tips unless you stay for the whole season. It is an ice cream shop that stays open for 3 1/2 months. She just recently gave notice that she was quiting. This was because they threatened to fire her for not being at her window 5 minutes before her scheduled time as they wanted. She was right on time. Also, they threatened to fire her because she had to have another worker cover for her for 1 hour. She will not get her share of the tips because she is not finishing the season, even though some of the kids have quit to go to school. The college kids will get their share even though they did not work as long. This does not seem fair or legal. Is it legal to hold the tips for over 3 months? It seems as though they are keeping money from her that she earned. If they can, is it legally binding since she was only 16 when she signed the tip pooling statement? I believe they have only been paying her $5 per hour as well. Can someone help me with these answers?

[Pattymd]

Under general circumstances, tip pooling is allowed. However, they cannot treat her as a tipped employee (thus paying the subminimum wage) if she does not make , and keep, at least $20 per month in tips. In addition, if they are not crediting her with enough tips to meet the minimum wage of $5.15 per hour, they are in violation of wage and hour laws. She can contact the state Dept. of Labor.

[Paul Pecott]

Do you know about holding the money for 3 1/2 months & paying those who worked less time?

[Pattymd]

If the employer is holding the distribution of tips from the tip pool, then they must adhere to the regulations I previously cited. They cannot "make it up" when the season is over.

[Paul Pecott]

Not sure I understand your reply. Can they or can't they hold for 3 1/2 months? Does this mean they have to pay out monthly?

[cactus jack]

Paul, let me give you a hand here....


"...Under general circumstances, tip pooling is allowed....."
This means they can pool the tips.

"...However, they cannot treat her as a tipped employee (thus paying the subminimum wage) if she does not make , and keep, at least $20 per month in tips.
This means they must pay her tips no less than once a month.

"...In addition, if they are not crediting her with enough tips to meet the minimum wage of $5.15 per hour, they are in violation of wage and hour laws. She can contact the state Dept. of Labor."
[/b]This means that she has to receive enough tips to equal minimum wage. Their failure to do so means you have the right to contact the DoL.[/b]

"...They cannot "make it up" when the season is over."
This means they are clearly in violation of the wage and hour laws because they are holding the tips for 3 1/2 months and reusing to give tips earned to employees unless they complete the 3 1/2 months. Which means you and your daughter have every right to file a grievance with the DoL.

Hope that helps!