At the law office of Shellist Lazarz Slobin LLP, our employment law attorneys hold employers financially liable for tip pool violations. If you believe your employer wrongfully distributes proceeds from a tip pool to non-tipped employees or themselves, contact tip pool violations lawyers at Shellist Lazarz Slobin LLP today. A Houston employment lawyer from our firm can answer those questions.
The Fair Labor Standards Act (FLSA) established a federal minimum wage that must be complied with even if individual states don't have a minimum wage law. Currently, the federal minimum wage is $7.25 an hour. However, an employer can pay an employee less than the minimum wage if the employee is a “tipped employee”—someone who receives tips from patrons in return for a service they provide.
In order to comply with FLSA requirements, employers must tell servers tips will be used to meet minimum wage requirements. Additionally, a server must regularly earn at least $30 per month in tips. Lastly, servers must be allowed to keep all of their tips, unless there is a tip pool for other tipped employees. When employers use a tip pool to pay non-tipped employees or when they take tips for themselves, they are in violation of FLSA requirements and liable for damages.
In general, a non-tipped employee is someone who is paid at least minimum wage and does not interact with customers—for example, a cook, dishwasher, or delivery personnel.
If your employer has a tip pool and shares proceeds from it with employees who do not have direct interaction with customers, he or she may be in violation of wage laws. Further, any manager or employee that has the power to hire or fire others, determine employee pay, administer employee records, or supervise scheduling should not qualify for tips. Additionally, when an employer pays a non-tipped employee less than minimum wage and uses the tip pool to bring him or her up to minimum wage, a tip pool violation has occurred.
If you believe your employer is breaking wage laws through tip pool violations, contact the Texas employment law attorneys at Shellist Lazarz Slobin LLP today. We can evaluate your case and discuss how best to proceed in order to protect your job and your pay. If you confront your employer first without understanding what the law says and what your protections are, you could lose your job and any chance of documenting tip pool violations.
Call Shellist Lazarz Slobin LLP at (713) 352-3433 to arrange a consultation.