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LawTalk
LawTalk, Attorney
Category: Legal
Satisfied Customers: 35309
Experience:  I am a practicing attorney with more than 30 years of experience in the legal field.
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I live in AR and work at a restaurant where we are required

Customer Question

I live in AR and work at a restaurant where we are required to tip out the bartender 2% of our sales. I have read and can't find where it is legal to make me do this.
JA: Have you discussed this with a manager, HR, or an attorney?
Customer: I did with the mgr and he said it is service industry standard
JA: Has anything been filed or reported?
Customer: i think someone reported it to the DOL
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 1 month ago.
Category: Legal
Expert:  LawTalk replied 1 month ago.

Good afternoon,

I'm Doug, and I'm very sorry to hear of your situation. My goal is to provide you with excellent service today.

Under Federal Wage Laws issued through the US Department of Labor, a tip pool, or tip sharing is legal and may be established by the employer as follows:

Tip Pool: The requirement that an employee must retain all tips does not preclude a valid tip pooling or sharing arrangement among employees who customarily and regularly receive tips, such as waiters, waitresses, bellhops, counter personnel (who serve customers), bussers, and service bartenders. A valid tip pool may not include employees who do not customarily and regularly received tips, such as dishwashers, cooks, chefs, and janitors.

Requirements

The employer must provide the following information to a tipped employee before the employer may use the tip credit:

1) the amount of cash wage the employer is paying a tipped employee, which must be at least $2.13 per hour;

2) the additional amount claimed by the employer as a tip credit, which cannot exceed $5.12 (the difference between the minimum required cash wage of $2.13 and the current minimum wage of $7.25);

3) that the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;

4) that all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement limited to employees who customarily and regularly receive tips; and

5) that the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.

Here is a link to the DOL site with this information: https://www.dol.gov/whd/regs/compliance/whdfs15.htm

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

I hope that I have been able to fully answer your question. As I am not an employee of JustAnswer, please be so kind as to rate my service to you. That is the only way I am compensated for assisting you. Thank you in advance.

I wish you and yours the best in 2016,

Doug

Expert:  LawTalk replied 1 month ago.

Hi,

It is possible that your questions and issues might be better served by an in-depth conversation with me. If you are interested, for a very nominal charge I can offer you a private phone conference.

Please know that I answered your question in good faith, providing you with the information that you asked for, and I did that with the expectation that you would act likewise and rate my service to you. If I have already provided you with the information you asked for and you have no additional questions, would you please now rate my service to you so I can be compensated for assisting you? Rating me costs you nothing as you have already paid the deposit for my help. All rating does is ensure that I am paid for my time in working with you.

Thanks in advance for your rating of my service, It is greatly appreciated,

Doug