“The customer gave me that tip, but the company takes 30% of it, claiming it’s for delivery app fees.”
Client Q worked as a directly employed delivery driver for a restaurant. He was not receiving the full tips that customers left on online orders. The employer made excuses, saying, “Online delivery platform fees are too high,” and deducted a percentage of the tips customers paid before giving the rest to Client Q. Client Q was doing the hard work, but a portion of his tips was being used to cover the company’s platform fees.
Song Law Firm’s Legal Analysis: Tips Belong Entirely to the Tipped Employee.
The rules regarding tips under the FLSA are very strict. A gratuity left by a customer must be retained entirely by the Tipped Employee.
While an employer may exceptionally deduct a very small percentage (around the actual rate) strictly for credit card processing fees, taking an employee’s tips to cover “delivery platform fees”—which are a standard business operating cost the employer must bear—is a blatant Violation of Tip Regulations. Song Law Firm proved that the company’s actions constituted wage theft.
The Result: Full Recovery of Stolen Tips and Punitive Damages
We corrected the employer’s trick of shifting business costs onto the employee.
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Result 1: Retroactively calculated and fully recovered all tips unfairly withheld during Client Q’s entire employment period.
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Result 2: Secured additional Liquidated Damages for the intentional violation of labor laws.
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Result 3: Reached a settlement requiring the company to completely cease its illegal tip deduction practices.
The tips you earn on your feet are not petty cash for your boss’s operating expenses. Song Law Firm protects your rightful share.
[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 based on general legal scenarios and past successes, and does not constitute legal advice. Please consult with an attorney regarding your specific situation.
