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The Legalities of Tip Sharing
There are a number of jobs that consider tips as part of the earned wages of an employee. Among the most notable examples of these jobs are waiters, waitresses, and bartenders. However, the number of workers who depend on tips as part of their salaries extends far beyond these few examples.
Tip sharing is a frequent occurrence in industries where workers earn tips. What this means is that all of the employees who receive tips collect these tips and then divide them equally among a certain number of workers. While there are some benefits to tip sharing, the system is often abused by managers and employers in illegal ways that deprive workers of their hard earned money.
Understanding the difference between illegal and legal tip sharing is important for all workers to understand so that they can prevent employers from taking advantage of them, and can receive the money that they have earned and deserve.
Legal vs. Illegal Tip Sharing
Tip sharing is a completely legal activity when tips are gathered and distributed among employees who directly share in providing a service to a patron. In a restaurant, this might include any employee who has direct contact with and serves the customer, including:
- Waiters / waitresses
- Bar staff
- Captains
- Busing employees
- Hosts / hostesses
While tip sharing among these types of employees is perfectly legal and can be extremely beneficial, it becomes illegal when employees are forced to share tips with workers that do not have direct contact with the customer. Again using a restaurant example, this could include:
- Chefs
- Dishwashers
- Managers / Supervisors
If you or someone you know has been forced to share tips in a way that is in violation of employment law, it is important to contact a legal professional as soon as possible in order to establish a case that will get you the compensation that you deserve.
Speak with a Los Angeles Employment Lawyer
Contact Los Angeles employment lawyer Perry Smith today at 888-356-2529 to discuss your legal rights and options.