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Proven Results No Matter the Case

As lawyers for the workers, we make sure that employers pay you for the long hours you put in and give you the wages you are owed.

WHAT IS TIP THEFT?

Illegal Tip Pooling & Other Forms of Tip Theft

Tip theft occurs when employers unlawfully withhold or take a portion of the tips that are meant for their employees. This practice is illegal, and it’s essential to understand your rights to ensure you are receiving the full amount of tips you earn.

For a free and confidential consultation, call (888) 992-2990 or contact us online. Hablamos español.

Could You Be Owed Unpaid Overtime Wages?
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HOW EMPLOYERS STEAL TIPS

Employers may engage in tip theft in several ways, including:

  • Tip Pooling Mismanagement: While tip pooling is legal in some circumstances, employers sometimes misuse it by including management staff who shouldn’t receive tips.
  • Withholding Tips: Employers may withhold tips outright, claiming they are part of the base wage.
  • Misclassifying Tips: Employers might misclassify tips as service charges or other forms of payment, preventing them from being properly allocated to the employees.

Legally, tips belong to the employees who earn them—not the employer. If the employer takes, withholds, or collects some or all of an employee’s tips, they have engaged in tip theft and can be held accountable.

Your Rights as an Employee

As an employee, you have the right to keep all the tips you earn. If your employer is taking any portion of your tips, you may be entitled to compensation. It’s crucial to know your rights and to take action if you suspect tip theft is occurring.

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What to Do If Your Employer Steals Your Tips

If your employer has stolen tips that you rightfully earned, you can file a complaint or claim with the labor board or another appropriate agency. You should also consider contacting a law office that handles these types of cases, as you may have grounds for legal action against your employer.

At Josephson Dunlap, we have represented more than 100,000 workers nationwide in all types of wage and hour cases, including those involving unlawful tip pooling and employer tip theft. Our experienced attorneys have recovered hundreds of millions of dollars in unpaid wages and have a 99% overall success rate. We are ready to stand up for you and your rights.

We represent hourly workers and other tipped employees, providing the personalized counsel and compassionate, one-on-one legal attention they need. Our goal is simple: to recover the wages you have rightfully earned. Let us help you with your claim today.

Call us at (888) 992-2990 or submit a secure contact form today to set up a complimentary consultation with one of our employer tip theft attorneys.

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Can Employers Pay Tipped Employees Less Than the Minimum Wage?

Employers cannot pay any employee—including a tipped employee—less than the federal, state, or local minimum wage. However, some states allow employers to take what is known as a “tip credit.” A tip credit is the difference between an employee’s regular pay rate and the minimum wage. The idea is that the employee will make up the difference, or the tip credit, in tips.

For example, in Texas, employers are allowed to take a tip credit of $2.13 (as of January 2023). This means that a restaurant in Texas could legally pay its servers as little as $5.12 an hour—or $2.13 less than the state’s minimum wage of $7.25 an hour. However, a server must make up the extra $2.13 an hour in tips; if they do not, their employer is responsible for making up the difference between their hourly rate plus the amount they have made in tips and the minimum wage.

Note that different states have different laws, and some cities even have separate regulations governing tip credits and what employers can and cannot do when it comes to paying tipped employees. We strongly recommend that you reach out to our knowledgeable attorneys if you believe you may have a wage and hour claim involving tip theft.

WHAT WILL NEXT STEPS BE?

Submit your case in as little as 10 minutes.

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Form Submission

Complete the form, and we'll connect with you within one business day. For a faster response, call us at (888) 992-2990 or click our chat bubble.

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Free Consultation

A personal case manager will quickly identify if you have a case. A quick 10-minute phone call is all it takes.

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We Build Your Case

Your personal case manager will work with you to make sure you have everything you need for a strong case.

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Get Your Wages Back

Once your case manager has everything, you just wait while we fight for your wages. We'll keep you updated on your case results and when you can expect your money.

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