Restaurant owners routinely steal tips from servers

Posted 4.21.2018

Right now, employers who utilize the tip credit without meeting the legal requirements to do so face costly wage and hour lawsuits, significant back pay requirements, stiff penalties, and major harm to their reputation. Stealing the hard-earned tips from tipped employees should never be tolerated, and this activity is rare. These bad actors should be punished, and the current legal requirements have stiff provisions to deter this type of behavior. As a reminder, in cases where a tipped employee’s earnings fall below the applicable minimum wage, the restaurant is responsible for making sure that the tipped employee earns the minimum wage by increasing the cash wage paid to the employee.

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