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Tip Pooling violations/tipped employees
- Tipped employees such as waiters, busboys, bartenders and delivery workers can be paid somewhat less than the minimum wage by taking a “tip credit.” In 2017 the minimum wage for tipped employees in the hospitality industry (restaurants, hotels, etc.) is $7.50 in New York State. However, employers must provide employees with notice that they are taking a tip credit, otherwise they must pay them the full minimum wage. Moreover, employees must receive the equivalent of the hourly minimum wage after tips (In 2017, if the employee is paid $7.50 per hour for a New York City employers with 11 or more employees, they must receive at least $3.50 per hour in tips for a total of $11.00 per hour).
- Tipped employees may share their tips with other tipped employees in what is typically called a “tip pool.” However, it is unlawful for managers or supervisors to participate in the tip pool. Further, it is also illegal for your employer to unreasonably deduct from an employee’s tips. A tip pool must be reasonable, that means if you are being forced to give up a large percentage of your tips as part of the tip pool that is likely a violation of the law.