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Illegal Tip Sharing / Tip Pooling In Restaurants Potential Class Action Lawsuit

Attention Servers, Bartenders, Runners, And Other Workers In The Restaurant Service Sector: You May Be A Victim Of Illegal Tip Pooling

Waiters, bussers, servers, and many more are among the most important employees a restaurant can have. They are a part of the so-called restaurant service industry wherein they are the customer’s primary contact in a food establishment. 

Most of the time, these people in a restaurant establishment are paid below the mandated minimum wage per hour.

However, they are open to receive tips from customers to make due of the small wage they make. 

On the part of a customer, is not tipping illegal? No, it is not mandatory and entirely legal to not tip. 

But, handing over a tip can make a huge difference to them. Tipping is entirely an almost exclusive phenomenon in the United States because employees of the restaurant usually make less of the mandated hourly minimum wage.

They depend on the tips that customers will give to them to pay their utility bills and bring food to their tables. 

Many restaurants and their respective administrations have varying policies regarding how these tips would be distributed amongst restaurant employees, yet there are instances wherein they are illegally done, which harms most members of the restaurant service industry. 

Known as illegal tip pooling or tip sharing, this is done by distributing shares of the collected tips to other restaurant employees who do not render direct service to the paying restaurant-goers. 

Reports were made detailing the incident wherein employees such as managers, chefs, bouncers, etc., are also given a part of the day’s collated tips, when in fact, they do not usually receive tips in the first place. 

According to federal law, specifically the amended Fair Labor Standards Act, restaurant owners can make it mandatory for their employees to participate in a tip pooling scheme wherein colleagues can share their tips and collect them all in a pool. 

Then, these tips will be subdivided equally amongst the employees. However, the employers themselves, along with supervisors and managers, are prohibited from taking part in this scheme. 

Other employees that are paid the full minimum wage along with other back-of-house employees can create a tip pool that includes them. 

Yet, they are not allowed to partake in this scheme if their employers receive tip credit. The law stresses that the tip pool will be only limited to restaurant employees who are customarily given tips by customers. 

There were already many cases that ended up being class action lawsuits that asked authorities to resolve the issue at hand. 

But how would you know if you are entitled to receive your share of tips from the restaurant’s tip pool? According to a report on the Class Action Org, they are the following: waiters, barbacks, bartenders, bussers, captains, restaurant runners, and servers.

We here at Consider The Consumer believe that this illegal practice should end, and those who are responsible for this should be held accountable for their misdeeds.

If you work for a restaurant and your job is one of those mentioned above, take note if you are forced by management to share your tips with other employees that do not provide direct service to customers.

Our official communication channels are open 24/7 to cater to your needs and concerns. Tell us your story, and we’d be more than happy to lend you a helping hand. 

Illegal tip Pooling

Editor’s Note on Illegal Tip Pooling In Restaurants Potential Class Action Lawsuit:

This article is created to keep you informed regarding the latest investigation being conducted against claims of illegal tip pooling schemes reported all over the country. 

What are your thoughts on this piece? Do you believe you are a victim of this as well? 

If you have any questions or a request, please send us a message by clicking the ‘Contact Us’ button below! We’d love to hear back from you. 

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Also, read why Amazon will be raising its minimum wages.

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