is it illegal to hold tips from an employee if they quit?
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is it illegal to hold tips from an employee if they quit?
hi, I recently quit a job due to the management and the environment. I couldn’t take it anymore so I walked out, now they are trying to tell me that I’m not getting my tips for that night due to me walking out. I just need to know if that is legal to do or not.
Asked on June 6, 2016 under Employment Labor Law, Michigan
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
The basic rule oregarding tips is that they belong to the employee, not the employer. An employees cannot be required to give their tips, or any part of them, to the company (except as part of a valid tip pooling arrangement and the employer can't be part of the pool). Essentially, tips are treated the same as any other wages earned. They must be paid out, whether or not the employee quits or is terminated. In MI, when an employee quits, the employer must pay the employee all wages due by the next regularly scheduled payday.
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