Complete Labor Law Poster for $24.95
from www.LaborLawCenter.com, includes
State, Federal, & OSHA posting requirements

Announcement

Collapse
No announcement yet.

Credit card tip withholding and deductions from cash tips, is this legal?

Collapse
This topic is closed.
X
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Credit card tip withholding and deductions from cash tips, is this legal?

    I work at a high volume restaurant in Massachusetts. This is the first place I've worked that the employer withholds all credit card tips and distributes it through a separate pay check each week in addition to my hourly check each week. Any credit card payment that'll charge the company a fee will be deducted from my tip!!

    Also, at the end of each shift the manager fills out a slip with my total sales and writes below 5% of my sales then that amount is taken out of my cash tips and given to the Expo. She also deducts 5% of my alcohol sales for the bartender. If there is a buser I'd have to pay 8% of my total sales. I don't have an issue tipping my coworkers when they "help" but I've absolutely done 99% of the work because the expo and busers go out of there way not to help me. Why do I have to automatically pay a set percentage from my tips I've earned? I'm paid $2.66/hr while they're paid $9 an hour plus all the waitresses deducted tips. On average I work 6hrs a shift and the buser&expo will help for only 3 hours.

    I received my training pay check. I worked 11.50 hours at $9.00 an hour.= $103.50
    Underneath is says declared tips $16.00 and then *deductions* $16.00.

    Gross Pay $119.50 FICA $9.13. F.I.T $.05.
    Net Pay $94.32

    With the tax deductions it should of been $110.32 that's $16 difference. I haven't declared any cash tips yet and won't report them until the end of the month. So I haven't received the $16 tip? I don't understand.

    Is this all legal?

  • #2
    Federal Law rules on tipped employees http://www.dol.gov/whd/regs/compliance/whdfs15.pdf


    And state law http://www.mass.gov/ago/doing-busine...hour/tips.html
    I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

    Comment


    • #3
      Elle provided some great links about federal and state law, so I am going to go with it from more of a procedural point of view.

      Based on what you posted, from a payroll perspective, you are being taxed on the $16 worth of declared tips by adding it to gross pay and then deducting it out. Were the $16 tips on a CC or were they cash tips that you declared? If they were cash, did you take that home the same night? If so, you already got the $16 on the night(s) you earned them.

      As an employer who deals with CC chargebacks, I can understand holding CC tips to make sure they "clear" the process. It would be very easy for an employee to defraud an employer really quickly over a few nights before the patrons ever saw the fraud. This holdback protects the employer from that just a bit and it is possible the restaurant doesn't keep enough cash on hand to payout all the CC tips.

      Comment

      The LaborLawTalk.com forum is intended for informational use only and should not be relied upon and is not a substitute for legal advice. The information contained on LaborLawTalk.com are opinions and suggestions of members and is not a representation of the opinions of LaborLawTalk.com. LaborLawTalk.com does not warrant or vouch for the accuracy, completeness or usefulness of any postings or the qualifications of any person responding. Please consult a legal expert or seek the services of an attorney in your area for more accuracy on your specific situation.
      Working...
      X