Wage theft as a tipped employee is a serious wage violation. In industries like restaurants, bars, and hospitality, tipped workers often rely on a combination of wages and tips to earn a living.

If your employer is taking a portion of your tips, paying below the legal minimum wage, or not compensating you for overtime, you should contact an experienced employment attorney like Rowdy Meeks Legal Group LLC. We will vigorously pursue employee rights, and assess and pursue claims against employers for minimum wage and overtime violations.

Know Your Rights as a Tipped Employee

Under the Fair Labor Standards Act (“FLSA”) and state wage laws, tips belong to the employee.

However, an employer can take a “tip credit,” allowing the employer to pay tipped employees less than the standard minimum wage, but the employee’s paid wages must still meet the minimum wage requirement when tips are included. If tips and the cash wage do not add up to the minimum wage, the employer is required to make up the difference.

Under federal and state law, employees can be required to pool their tips to be shared with other employees. However, managers, supervisors, and other employees who do not service public customers cannot take part in the tip pool. An example of such employees are dishwashers and other back of the house employees.

Tipped employees are entitled to overtime pay (time and a half) for working more than 40 hours in a week. It is important to note that tipped employees in many states are subject to a lower minimum wage of $2.13 per hour if their tips bring them to a total of $7.25 (the federal minimum wage).

Common Forms of Wage Theft as a Tipped Employee

Tip Confiscation: Your employer illegally takes part of your tips, or requires you to share tips with non-tipped employees or managers.

Failure to Pay Minimum Wage: Your combined tips and hourly wage don’t equal the federal or state minimum wage, and your employer doesn’t make up the difference.

Unpaid Overtime: You work more than 40 hours a week, but your employer doesn’t pay overtime at 1.5 times your hourly rate.

Tip Credit Abuse: Your employer improperly uses the tip credit by not paying you the correct base wage.

Off-the-Clock Work: Your employer requires you to perform work before or after your shift without pay (e.g., cleaning, setting up, or staying after hours).

Non-tipped Work: Your employer pays you the lower tipped minimum wage while you perform non-tipped work such as cleaning, rolling silverware, stocking, and other like jobs for which you do not receive tips. This is illegal.

How to Deal with Wage Theft as a Tipped Employee

Gather Evidence of Wage Theft

• Record of Hours Worked: Keep a log of your daily hours worked, including overtime and any off-the-clock work.
• Tips Received: Track your daily tips and compare them to your employer’s records to ensure they match.
• Pay Stubs: Save your pay stubs and compare them to the hours worked to verify that you’re being paid correctly.
• Tip Pooling Records: If you’re part of a tip pool, track how much you contribute and who else is receiving tips.

Speak to Your Employer

Sometimes, wage theft is the result of a misunderstanding or an error. It’s worth addressing the issue with your employer first if you feel comfortable doing so. Ask for clarification about any discrepancies in your pay, such as missing tips or unpaid overtime.

Contact an Experienced Employment Attorney

Contacting an experienced employment attorney is important in recovering your lost wages. An employment attorney can help you understand the minimum wage and overtime requirements based on your circumstances and state.

Contact an Experienced Employment Attorney to Fight For Your Rights

Waiters, waitresses, and bar staff are often the victims of wage theft. Employers may set up improper tip pooling and tip-sharing arrangements. Employers can track tip credit for minimum wage and overtime laws, but employers can’t keep any tip money. Employers in some industries can pay a special base rate less than minimum wage. However, they have to show that employees received enough tip money to equal the applicable minimum wage.

Employers commit wage theft intentionally and often, so contact Rowdy Meek Legal Group LLC for a free case evaluation if you are experiencing wage theft as a tipped employee.