Tip Pooling
What are tips and when should they be paid?
A tip is money a customer leaves for an employee over the amount due for the goods sold or services rendered. Tips belong to the employee, not to the employer. If a customer tips on a credit card, the tip must be paid to the employee no later than the next regular payday following the date the patron authorized the credit card payment. Employers can not take any credit card processing fees from the tips.
If I receive tips on the job, do I have to share them with my employer or supervisor?
In California, employers cannot share in tips or tip pools of their employees. Sometimes a supervisor or owner of a business takes a percentage or a fee out of their employee's tips. Even though this is practiced in restaurants, hotels, and casinos, this is strictly prohibited.
As in all other wage cases, an employee can recover attorney's fees in an action to recover tips.
California Tip Pooling - Can I be forced to share my tips?
The answer is yes and no. Under California law, "involuntary tip pools" are permitted where the tips are shared with the personnel who provide the services for tips. For example, in a restaurant, this includes everyone who provides "direct table service", i.e. waiters and waitresses, busboys, bartenders, host/hostesses and maitre d's.
The most controversial aspect of tipping is when supervisors and owners share in the tip pools. This practice is not legal. Supervisors and owners cannot share in tip pools and tip pooling cannot be used to compensate the owner, manager, or supervisor of the business under any circumstances.
Your employer can neither take your tips (or any part of them), nor deduct money from your wages because of the tips you earn. Furthermore, your employer cannot credit your tips against the money the employer owes you.