“The customer gave that tip to me. Why do I have to split it with the manager?”
Client F was a server at a high-end restaurant in New Jersey. Tips from satisfied customers were her main source of income. However, the restaurant had a strange rule: all tips were pooled together and distributed not just among servers, but also to managers and the head chef. Client F was told it was for “teamwork,” but she felt her share was unfairly small.
Song Law Firm’s Legal Analysis: Tips Belong Only to Tipped Employees.
This is a common violation in the restaurant industry. Under the FLSA (Fair Labor Standards Act), employers, managers, and supervisors are strictly prohibited from keeping any portion of employees’ tips or participating in a valid tip pool.
The Song Law Firm Labor Law Team obtained the restaurant’s payroll records and tip distribution logs. Our analysis revealed that managers had taken a significant portion of tips over the past two years. We argued that this invalidated the “Tip Credit,” meaning the restaurant also owed the full minimum wage, not the lower tipped wage.
The Result: Full Recovery and Class Settlement
This case went beyond Client F, restoring rights for the entire serving staff.
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Result 1: Full repayment of all tips illegally taken by managers and kitchen staff.
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Result 2: Recovery of the difference between the tipped wage and the full minimum wage due to the tip credit violation.
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Result 3: Achieved a group settlement with guaranteed anonymity for the servers to prevent retaliation.
Tips are not a bonus for the boss. Song Law Firm protects the hard-earned money of service workers.
[Contact Us]
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KakaoTalk Channel: Song Law Firm
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Phone: 201-461-0031
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Email: mail@songlawfirm.com
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Website: www.songlawfirm.com
Disclaimer: Prior results do not guarantee a similar outcome. This content is for informational purposes only and does not constitute legal advice. Please consult with an attorney regarding your specific situation.
