Many employees in the restaurant industry rely on tips for a significant portion of their earnings. Many of these workers are also familiar with the process of pooling (or sharing) tips among all the tipped workers at their restaurant. Employers cannot simply construct tip pools however they want; federal law contains several restrictions on how employers pool tips. Whether you are an employer or an employee, if you have questions about the legality of your tip pool, contact a knowledgeable Atlanta tip-pooling lawyer for reliable answers.
According to a recent news release from the federal Wage and Hour Division, a Southern California restaurant was operating an illegal tip pool.
As background, the Fair Labor Standards Act does not set a limit on the percentage or amount of each employee’s contribution in valid mandatory tip pools. Instead, a tip pool’s validity depends on whether or not the employer takes the tip credit.
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