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Allen M., Esq.
Allen M., Esq., Employment Lawyer
Category: Employment Law
Satisfied Customers: 19098
Experience:  Employment/Labor Law Litigation
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I own a coffee shop and my manager is working with customers

Customer Question

HI I own a coffee shop and my manager is working with customers all day long, he makes coffee, serves tables, and also perform a little managerial work.
Can he participate on tips?
Submitted: 2 years ago.
Category: Employment Law
Expert:  Allen M., Esq. replied 2 years ago.
Hello, my name is ***** ***** I look forward to assisting you today. I bring nearly 20 years of experience in various legal disciplines.
A manager, to maintain a salaried exempt status, must be in a managerial position. That doesn't mean that all or even most of their work must be solely as a manager.
If that employee is the "boss" while they are on shift, there to deal with issues of supervision and decision making, they are the manager even when doing other activities that would be considered hourly in nature.
The employee must have active and meaningful input into decisions of hiring/firing and other personnel decisions.
If that manager is engaged in those activities, they can meet the salaried exempt requirements.
Customer: replied 2 years ago.
My Manager do not has the authority to hire or terminate employees. Can he receive tips?
Expert:  Allen M., Esq. replied 2 years ago.
Ok, that's your question then.
It is concerning tips.
First, I'd have to say that I hope that your manager is paid hourly. Based on your statement, he can't be appropriately classified as salaried.
Second, on the issue of tipping, it is only illegal for management to receive tips as part of a tip pooling system which takes tips away from hourly employees and then divides them up. Tip pooling isn't itself illegal, but if the tip pooling system starts giving managers a division of that tip pool, that is not legal.
A manager earning his/her own individual tips for his/her own work which normally would receive a tip, that is not illegal.