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Is restaurant tip sharing legal? Texas tipped employees learn your rights

Comments (3)

Restaurant tip sharing laws
Restaurant employees shortchanged on wages and tips:

The restaurant industry has an estimated 215,000 full-service restaurants in the United States, accounting for $298 billion yearly. Yet many servers, waiters, bartenders and tipped employees nationwide are not paid correctly and are being cheated out of thousands of dollars in wages every year. This industry is particularly at risk of wage and overtime violations.

Case in Point - New York Mets baseball player brought to court for overtime and minimum wage violations

Two former employees of popular New York restaurants co-owned by New York Met Carlos Beltran filed a lawsuit against the owner claiming they were not paid according to federal wage laws. The lawsuit filed by the former waiter and bartender seeks class-action status on behalf of 50 other workers.

The lawsuit alleges that in the two restaurants, Sofrito and Sazon, employees were not paid minimum wage, overtime, or spread of hours pay. The former restaurant employees claim that workers were paid a fixed shift pay, regardless of how many hours they worked. The lawsuit also claims tipped employees were also forced to share tips with workers who were not entitled to them.

Illegal Tip Sharing
Tip sharing is very common in the restaurant industry, but this practice is usually illegal. The FLSA states that tipped employees are not required to share tips with workers who do not regularly receive tips, including dishwashers, cooks, and managers.

How to recover up to 3 years of your back pay
Kennedy Hodges LLP has represented many waiters, wait staff and kitchen staff to recover the back wages owed to them. Order our free book, "The 10 Biggest Mistakes that can Hurt Your Wage and Overtime Pay," to learn how to recover up to 3 years of your back pay.

If you believe you have been a victim of wage theft contact our office at 1-888-449-2068 to start a free case review with our employment lawyers.

Read more on
Tipped Employees.
3 Comments:
Some employers have an unlawful “tip pooling” arrangement. This occurs when an employer withholds your tips in order to tip out other employees who customarily do not receive tips (cooks, dishwashers, managers etc). If your employer is requiring you to share your hard-earned tips in this capacity, the tip credit is invalid and you may have a claim for a wage violation.
Posted by KH Law on June 27, 2011 at 10:57 AM
were i work all the servers put the tip together. at the end of the day the manager splits all the tips. with the bartender ,bust boy, host, owner, servers and including him the manager.all of this people get a part of the tip that the servers put together. is this legal.
Posted by jesus on June 25, 2011 at 01:35 AM
were i work all the servers put the tip together. at the end of the day the manager splits all the tips. with the bartender ,bust boy, host, owner, servers and including him the manager.all of this people get a part of the tip that the servers put together. is this legal.
Posted by jesus on June 25, 2011 at 01:34 AM

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