Employer Tip Theft Attorneys
Recovering Stolen Tips and Wages for Tipped Workers Nationwide
Tips are your wages. When an employer withholds, mismanages, or pockets any portion of what customers leave for you, that is wage theft under federal law. It is also one of the most underreported violations in the service industry, because many workers do not realize their employer is breaking the law or that they have a right to fight back.
At Josephson Dunlap, we represent tipped workers in claims against employers who have stolen their earnings. We never represent employers. If your tips have been withheld, skimmed, or redirected through an illegal tip pool, contact us. Our firm has recovered hundreds of millions of dollars in back wages for over 100,000 workers across the country.
WORKERS REPRESENTED NATIONWIDE
IN WAGES RECOVERED
CONSULTATION FEE
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What Is Tip Theft?
Tip theft occurs when an employer illegally withholds, mismanages, or takes any portion of the tips earned by their employees. Federal law under the Fair Labor Standards Act is clear: tips are the property of the employees who earn them. Employers are not permitted to keep any part of those tips for themselves, and managers and supervisors cannot receive tips from a mandatory tip pool.
Tip theft is widespread in the restaurant, hotel, and service industries, and it often goes unnoticed because workers are not given a clear accounting of the tips they collected. If you suspect your employer is taking part of what you earned, you may have a legal claim for those wages plus additional damages.
How Employers Steal Tips
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Illegal Tip Pooling
While tip pooling among tipped employees is legal in some circumstances, employers often structure tip pools to benefit managers, supervisors, or employees who do not customarily receive tips. This violates the FLSA and reduces your take-home pay.
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Withholding Tips Outright
Some employers take a percentage of tips collected each shift, keep credit card processing fees out of employee tips at a rate exceeding their actual cost, or simply pocket cash tips before distributing them. All of these practices are unlawful.
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Misclassifying Tips as Service Charges
A service charge added to a customer's bill is not a tip under federal law. Employers who label automatic gratuities or mandatory charges as "service fees" and keep them rather than passing them to employees are committing wage theft.
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Improper Tip Credits
Under federal law, employers in some states may pay tipped employees a lower base wage if tips bring total earnings up to minimum wage. If an employer takes a tip credit but then also takes part of those tips, or if tips do not cover the gap to minimum wage and the employer fails to make up the difference, that is a violation.
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Keeping Tips During Non-Tipped Work
If a tipped employee spends more than 20 percent of their shift doing non-tipped side work, the employer may not take a tip credit for those hours. When employers ignore this rule, they underpay workers who are performing tasks that fall outside tipped duties.
Talk to a Tip Theft Attorney Today
At Josephson Dunlap, we offer free and confidential consultations for tipped workers who believe their employer has stolen wages. You pay us nothing to find out if you could be eligible for a claim.
Tip theft is wage theft. If your employer has withheld your tips, structured an illegal tip pool, or failed to meet the minimum wage after claiming a tip credit, contact us to discuss your options.
Call (888) 992-2990 | Hablamos español.
How Tip Credits Work in the United States
Federal law sometimes allows employers to pay tipped employees a lower direct cash wage if tips bring total hourly pay up to the federal minimum wage. This is called a tip credit. If tips fall short, the employer must make up the difference. Here is how the numbers break down in Texas:
Tip Credit - Federal Minimum Wage Applies
Your Rights as a Tipped Employee
- You are entitled to keep 100 percent of your earned tips unless a valid, lawful tip pool applies
- Managers and supervisors cannot receive money from a mandatory tip pool, regardless of how the employer structures it
- Your total compensation, including tips, must meet the applicable minimum wage every pay period
- You cannot be required to share tips with non-service employees such as cooks or dishwashers unless they participate in a valid tip sharing arrangement under state law
- You have the right to take legal action if your employer has taken, withheld, or mismanaged your tips
Frequently Asked Questions
There is no cost. We offer free and confidential case reviews to help you understand your options. We do not charge any upfront legal fees. We only receive attorney fees if we win a financial recovery for you.
Getting started is straightforward. You can fill out our secure online form or call our office directly. A case manager will review your job details, look for qualifying wage violations, and let you know whether you may have a claim. This initial review is free and takes only a few minutes.
Federal and state laws prohibit employers from punishing or terminating workers for reporting wage violations or participating in a legal claim. This type of unfair treatment is called retaliation, and it is illegal. If your employer takes adverse action against you, our firm can advise you on your rights.
No. Your initial consultation with our firm is private and confidential. We will not contact your employer or notify them that you spoke with us. You can check your eligibility and learn about your rights without your employer's knowledge.
How Our Wage Recovery Process Works
Start your free, no-risk case review in about 10 minutes.
Submit Your Secure Form
Tell us about your missing pay through our confidential online form. We will review your details and follow up within 24 hours. Need answers right away? Call (888) 992-2990.
Get Your Free Consultation
A case manager will spend about 10 minutes reviewing your situation, looking for qualifying violations like unpaid overtime, off-the-clock work, or regular rate errors. Clear advice, no obligation.
We Build Your Case
If you have a valid claim, we get to work right away. Our team handles the paperwork, gathers the evidence, and builds a legal strategy suited to your situation.
We Recover Your Wages
Once we have the facts, our legal team pursues the full amount you are owed. You receive updates throughout the process and pay nothing out of pocket. Attorney fees are collected only if we win.
Find Out If You Could Be Owed Back Wages
Fill out the form below to start your free case review. A member of our team will follow up within 24 hours.
Or Call Us at (888) 992-2990 | Hablamos español.