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Tips, like minimum and overtime wages, are primary sources of income for most workers, especially those who work in restaurants, casinos, and other establishments. Tipped employees are entitled to what they receive from their customers after they provided the latter with excellent customer service. In fact, the state laws protect them from any violations that their employers may commit with regard to the tips they receive.

Sadly, not all employers recognize the existence of the tip laws in California, which is why a lot of complaints are filed against them. Basically, the primary provision dictates that no employer has the right to share the tips their employees receive. However, some employers tend to forget this basic rule, which can be found in Section 351 of the state’s Labor Code.

If you are an employee who regularly receives tips from your paying patrons, then it is best that you exercise your rights once your employer wrongfully collects tips from you and your co-workers. You may file a complaint with the appropriate agency such as the Equal Employment Opportunity Commission (EEOC) or the California Department of Fair Employment and Housing (DFEH), or you may consult a top Los Angeles employment lawyer.

Meanwhile, here are some things you need to know as a tipped employee in California:
  • You are entitled to your tips and that you are still paid the minimum and overtime wages. Your employer must still pay you full minimum and overtime wages regardless of how much tips you earn. Your employer violates this provision if your employer credits the tips you receive in order to meet the requirements of the minimum wage.
  • Your employer can impose a mandatory tip pooling policy. While this is so, all tips or gratuities left for an employee must be shared among employees who contributed directly to the service of the customer.
  • Your manager should not share tips with your co-workers. If you have a manager or any person in-charge of hiring, firing, discipline, and supervise servers without the employer’s consent, then he or she is not required to share tips with you and your co-workers, regardless if he or she assisted in serving customers. If you work on a casino and you have a manager that does not hire, terminate, supervise, or discipline workers, then he or she can join the mandatory tip pooling.