Is it legal for your employer to deduct a percentage of sales as tip sharing even when the recipients are not there?

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Is it legal for your employer to deduct a percentage of sales as tip sharing even when the recipients are not there?

I work at a restaurant where 3.5% of sales is put into a tip pool for the bartender, host, and busser. This amount is taken out no matter how many of these employees are there or not. I constantly work alone (slow restaurant) and still am paying this 3.5% when none of these employees are there to assist. Is this legal?

Asked on July 8, 2012 under Employment Labor Law, Utah

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Whether or not the deduction of a percentage of sales as a tip sharing mechanism is allowed at your place of employment depends upon what has been agreed to orally or in writing by the employee and whether there is mention of such a practice in any employee employer handbook at the place where you work.

If such has not been agreed to by the employee and is not mentioned in any employer employee handbook and such practice is not common in the industry that you are in, then such practice is not allowed. I suggest that you may wish to consult with an attorney that practices employment law as to any further questions that you may have on the subject.

 


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