Tip Basics for Employees in California

Tip Basics for Employees in California

The basic rule of tips is that they belong to the employee, not the employer. Under California law, an employer cannot take any part of a tip that’s left for an employee.

This means that you can’t be forced to share your tips with the owners, managers, or supervisors of the business (who are all considered to be the agents of the employer).

Your employer also can’t count your tips towards its minimum wage obligations. In most other states, employers may pay employees less than the minimum wage, as long as the employees earn enough in tips to make up the difference (called a “tip credit”).

However, California does not allow employers to take tip credits. Employers must pay employees at least the California minimum wage for each hour worked, in addition to any tips they may receive.

David Payab, Esq. from The Law Offices of Payab & Associates can be reached @ (800) 401-4466 or by visiting http://payablaw.com

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