Tipped employees include not only servers in restaurants, but bartenders, hotel porters and maids, and many other service workers. Many California workers receive part, or even most, of their income in tips. They depend on and deserve the tips they are left by satisfied customers. There are measures in place in both federal and California law to protect the rights of tipped workers.
Unfortunately, employers don’t always abide by the law as they should. If you are an employee who receives tips, it’s important to understand your legal rights regarding tips, and what to do if those rights are violated.
To understand your rights, it is important to first understand what is a tip, and what’s not. A tip is an amount given to a worker over and above the amount due for goods or services. A tip is voluntary; the customer decides whether to leave it, how much to leave, and to whom it should be given. Cash left on a restaurant table after a meal to reward the server for good service is a tip. There are situations in which employers can pool tips and share them among employees. In order to do this legally, employers have to follow certain rules.
Only employees who are considered to be in the “chain of service” from a patron may be included in the pool. For instance, the host who seats the patron at a table, the bartender who prepares their drink, the server who serves the drink and food, and the busser who clears the table are usually considered to be in the chain of service. Cashiers, dishwashers, and cooks are not typically in the chain of service. Managers and supervisors may serve a table, but they are excluded from the tip pool under California law.
California law also provides that tips from the pool must be distributed in a way that is fair and reasonable. Typically, servers receive the largest percentage of pooled tips, with bussers getting less, and hosts and bartenders receiving still less. What is considered fair and reasonable depends on each business’s individual situation.
Employers are subject to liability under a number of California laws, including unfair competition laws, laws regarding private attorney general actions (PAGA), and others. An experienced labor law attorney can help you explore your options and decide on the best way to pursue your rights.
The attorneys of The Graves Firm have many years of experience in California employment law. Attorney Allen Graves began his legal career at Paul Hastings, a large national law firm representing corporate employers. His exclusive focus was the defense of large companies in employment lawsuits. This background sets The Graves Firm apart from most employee-side attorneys; unlike them, we have seen these cases from employers’ perspectives. We believe that perspective provides a big advantage to our clients.
That experience shows in our results. The Graves Firm has secured over $100 million from lawsuits against California employers. There are many reasons for our successful record. We intentionally maintain a smaller caseload than many other firms so that we can devote the proper attention to each client and each lawsuit. We purposely accept only cases that we believe can make a real difference in how workers are treated. We focus on cases with strong claims, and we work with clients who want to make a difference for themselves and others.
And while almost all cases of this type settle, we will never sacrifice the best possible settlement in favor of a faster settlement. We know how hard you work, and we are committed to working equally hard to make sure you get what you deserve.
If you believe that you have been the victim of illegal tip sharing, you are probably not alone. If you take action, you can help others who have experienced this. It can also be difficult to know for certain if your employer is violating the law. You don’t have to figure it out on your own. We invite you to learn more about our attorneys, our services, and our track record, and to contact The Graves Firm to schedule a consultation.
© 2024 The Graves Firm, A Professional Corporation|Legal Disclaimer|Privacy Policy
Law Firm Website Design by The Modern Firm
