Can your employer take your tips?

You have a tip jar on the front counter when you are at work. Customers frequently stuff in a few dollars or at least their spare change. By the end of the night, you often have a good amount of money in the jar.

You never know how much, though, because your employer always takes your tips. He or she claims they're given to the business in general, and collects them every night. Even if they are "for the business," you never see anything, so it's clear to you that your employer just pockets them.

Is there any way this is legal? Customers only interact with you. Those tips are clearly intended for you. Can your employer take them?

No. Under New York law, your employer cannot accept or demand your tips, either directly or indirectly. Even if tips are put on credit cards, your employer cannot keep them. This is true whenever a customer leaves a tip behind specifically for one of the employees, yourself included. The law also applies to any worker in the private sector, in any industry.

Generally speaking, this law applies to those working in bars, restaurants and hotels. However, official government documents also note that it covers workers in other occupations, such as hairdressers, attendants at a car wash, valets and golf instructors. On top of that, this law also covers door workers at hotels, apartment buildings and other such locations.

It is very important for both employees and employers to understand how this law works. Violations are not taken lightly. Both sides must be very clear on the wage and hour laws and how money must change hands.

Source: New York Department of Labor, "Tips and Gratuities Frequently Asked Questions," accessed June 07, 2018

No Comments

Leave a comment
Comment Information

Hear From Our Clients

Mr. Skolnik and Mr. Gaboury have represented me on multiple cases over the past two years. They are dependable, knowledgeable, and professional. They provided high quality legal guidance for my small business during a difficult time and brought me a peace of mind. I highly recommend Cox Padmore Skolnik & Shakarchy as your legal business representative. -Anonymous

Read More Reviews

Contact Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Tap To Request An Exploratory Consultation

New York Office
630 Third Avenue
19th Floor
New York, NY 10017

Phone: 646-355-1648
New York Office Map

Great Neck Office
98 Cutter Mill Road
Suite 310N
Great Neck, NY 11021

Phone: 646-355-1648
Great Neck Office Map

Hackensack Office
27 Warren Street
Suite 304
Hackensack, NJ 07601

Phone: 646-355-1648
Hackensack Office Map

Denver Office
1060 Humboldt Street
Denver, CO 80218

Phone: 646-355-1648
Denver Office Map