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Tip share in Texas, legal?? Texas

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  • Tip share in Texas, legal?? Texas

    I am a tipped employee in north Texas at a seasonal resort and had a question about the legality of the company's tip share program. The tips that we receive are in addition our normal daily rate. Currently, 25 percent of the tips are withheld and divided between the office staff, housekeeping staff, and other outdoor staff. I know of one manager that is part of the tip pool. A portion of the pool is also used for an incentive program for employees. Is this practice legal??? Any thoughts would be appreciated!

  • #2
    what is your normal daily rate? is it at least minimum wage? No matter what you must make minimum wage (including any tip credit which is legal in TX)

    Tip pooling --> Texas doesn't have any specific laws, so it falls back to federal.."According to the federal Department of Labor, only employees who regularly and customarily receive tips can be part of the pool. Employees can't be required to share their tips with employees who don't usually receive their own tips, like dishwashers or cooks. And no employers are allowed in the pool: Tips from a tip pool can't go to the employer or, in some states, managers or supervisors." Texas is not a state that has that law regarding managers and supervisors.

    What does the manager manage? Is it a position that also receives tips? The one that stands out more for me is office staff and whether they would normally receive tips. But it is possible depending on their duties that they would fall into the pool.

    It is possible there is an issue with saving some of the pool for an incentive plan -- it might be considered "go to the employer", but if in the end it goes to the employee, the employer could make that argument in any wage claim and possibly win.

    So while it might not seem fair, I doubt you would have much of a claim with the TWC or DOL for your concerns, especially since it is a seasonal resort where, to me at least, I expect visitors to tip almost everyone.


    • #3
      What is your position and the nature of the tips? Are these cash tips handed to you directly by patrons or "service charges" added to a bill?
      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.


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