Is it legal for a general manager/co-owner of a restaurant to receive a percentage of a server’s tips for busing some tables?
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Is it legal for a general manager/co-owner of a restaurant to receive a percentage of a server’s tips for busing some tables?
He is also a host at the restaurant yet clocked in as a general manager and receives a portion of the servers tips at the end of the night. If he helps out a little more than usual, busing some tables, we are asked to tip out a few more bucks to him. Is this legal?
Asked on July 16, 2011 under Employment Labor Law, New Jersey
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Do you have an employee contract with your employer setting forth how tips are to be allocated? Is there an employee handbook with your employer discussing allocation of tips at your workplace? If so, that is the start to answer your question.
What is the custom and practice in the restaurant industry where you work for the general manager who happens to be the restaurant's co-owner to receive some percentage of the tips if he does table busing? Are the tips for each evening put in a jar to be divided out or does each worker get to keep the tips he or she receives at the end of the evening?
Most likely there is no law prohibiting the general manager and co-owner for receiving a portion of your tips if he helps out busing if you are willing to let him, but I do not see where he can force you give him a portion.
Most often owners of a business do not share in the receipt of tips from other employees' shares.
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