Orange County Employment Lawyer

Tip Sharing Laws

In light of the recent ruling in favor of baristas in a class-action suit against Starbucks, many employers and service industry employees are taking a closer look at laws regarding their rights in a tip share workplace. Federal laws are very specific in relation to this work environment and clearly define the responsibilities of employers to employees who are reliant on tips.

Federal law requires that an employer must pay no less than two dollars and thirteen cents an hour, provided that the tips the employees earn makes up the difference between this and minimum wage. If the employee does not earn enough tips to cover that difference, the employer is responsible for compensating the employee.

While tip sharing is legal in all fifty states, there are specifics that ensure the fairness of the acts. For instance, employees reliant on tips do not have to participate in a tip share that benefits employees that have not “customarily and regularly participated in tip pooling arrangements, such as dishwashers, cooks, chefs and janitors.” If the employer is making requirements that the tips be shared among other employees, or management, then the tip share program is no longer legal. This is the line that was crossed at Starbucks, which resulted in over one hundred million dollars in restitution for the baristas in California.

If you have been treated unfairly in a tip-dependent job, contact Perry Smith with Orange County Employment Lawyers at 888-356-2529 for a free consultation.