Is your boss stealing from your tips?

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Is your boss stealing from your tips?

On Behalf of | Sep 17, 2022 | Employment Law

If you work in the service industry, tips are probably a large part of your income. How much you make in tips might even be higher than your hourly wage, which is common in bars and restaurants. While you may have to tip out bartenders, bussers and other coworkers, it is important that you protect your tips from your boss.

There are cases where business owners and managers blatantly take their employees’ tips. However, a less direct approach is easier to get away with. Here are some ways that your boss might be stealing from your tips without you knowing.

Deducting credit card processing fees from your tips

Some businesses deduct a percentage of their employees’ tips to cover credit card processing fees. Not only is this illegal, but it can also make it harder to earn good tips because guests might feel like they are paying higher bills. Remember that credit card processing fees are an expense of the restaurant, not your tip.

Lowering your wages because of your tips

Another tactic that your boss might try is lowering your wages based on how many tips you have earned. Your boss might also try using your tips as a credit against your wages. California law does not allow either of these things. You must receive your tips on top of your minimum wage.

No matter where you work, you need to know that it is illegal for your boss to steal from you. You deserve every tip that you get.