Tip Theft Attorney

Under California Labor Code § 351, tips are the sole property of the employee. Employers and their agents (managers, supervisors) cannot collect, take, or receive any portion of tips. Mandatory tip pooling is allowed only among employees who provide direct service to customers. Employers cannot use tips as a credit against minimum wage because California does not allow a tip credit.

Under NY Labor Law § 196-d, employers, including owners and managers, cannot retain tips. New York allows a limited tip credit for certain hospitality workers, but employers must meet strict requirements including notifying employees in writing. Tip pooling is allowed among service employees but not managers or supervisors. Violations carry liquidated damages equal to the stolen tips.

Not necessarily. In California, any charge designated as a gratuity must be distributed to employees (Lab. Code § 351). Service charges that are not designated as gratuities can be retained by the employer, but employers must clearly disclose how service charges are used. In New York, mandatory service charges in the hospitality industry must generally be distributed to service employees.

In California, you can recover stolen tips plus interest, waiting time penalties (Lab. Code § 203), and attorneys' fees. In New York, you can recover stolen tips, liquidated damages equal to 100% of the unpaid amount, interest, and attorneys' fees. Class or collective actions are common because tip theft policies typically affect all tipped employees at an establishment.