In a tight jobs market, some employers feel they can take advantage of employees by not paying all of their wages, not paying overtime, taking improper deductions or forcing hospitality workers such as waiters, waitresses and bartenders to share tips with co-workers in an unlawful manner.
At the New York City law firm of Xue & Associates, P.C., we are committed to protecting employees' rights in wage and hour litigation and class-action litigation arising from violations such as improper deductions or illegal tip-sharing policies.
Tip Splitting Attorney
If you receive tips as part of your compensation, you should know your legal rights. Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid the federally mandated minimum wage. In certain cases, however, an employer can use a "tip credit" and pay hospitality workers less if the amount they earn in tips is enough to bring them up to the level of the mandated minimum wage. If an employer chooses to take a tip credit, the employee must first be informed. In the event an employer does not distribute tips to ensure an employee is compensated at the minimum wage level, he or she can be held financially liable for violating the FLSA.
A restaurant can have a policy of pooling tips under a system that splits tips based on percentages, or an individual server can keep tips and give shares to supporting team members. However, tip pooling is limited to the workers on the main floor of the restaurant – servers, bussers, etc. – and not management, owners or other employees who do not interact with the customers in such a way.
Deductions Disputes
A business may require employees to pay for certain business-related expenses, but it is generally unlawful for an employer to fail to reimburse employees for business expenses incurred. Improper deductions may include deductions for uniforms, gasoline, meals during business trips, meals when meeting with clients and housing.
The laws regarding disputes over tip splitting and improper deductions are complicated. If you are a victim of either practice, it is wise to retain the services of an experienced New York City tip splitting and improper deductions attorney who can help build a strong case in order to recover back pay and penalties.
Our lawyers can answer your questions, assess the facts of your case and recommend the best steps to take next during a free, no-obligation consultation. Call 212-219-2275 or email us to schedule an appointment.
The material contained in this website is for informational purposes only and is not to be considered legal advice. A lawyer-client relationship is not created by visiting this website. Prior results do not guarantee a similar outcome.
