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One of my best friends manages a small restaurant with a mutual friend of ours (daughter to the owners). She came to me a few days ago certain that the owners of the restaurant, who are present a few days each week, are taking shares of the tips from a pooled jar. She mentioned it to the owners daughter and her response was "that's how my parents have always done it. If we split the tips equally then everyone will get paid $2.75/hour."
She asked me for advice on how to approach them about this and to be honest I didn't know what to say. I was pretty floored as I believe it's quite an unethical circumstance. She is certain they are taking tips, which was my first question to her. Additionally, they have her classified as a 1099 contractor that entails making food, serving, and any other duties that come with running a restaurant.
I'd like to pass on some sound advice to her. Can anyone weigh in?
If the owner is taking a portion of the pooled tips, (and not performing duties covered by the tip pool) it's a violation of federal law.
Start here: FLSA Tipped Employees
Go to page 2 and look under Tip Retention.
One of my best friends manages a small restaurant with a mutual friend of ours (daughter to the owners). She came to me a few days ago certain that the owners of the restaurant, who are present a few days each week, are taking shares of the tips from a pooled jar. She mentioned it to the owners daughter and her response was "that's how my parents have always done it. If we split the tips equally then everyone will get paid $2.75/hour."
She asked me for advice on how to approach them about this and to be honest I didn't know what to say. I was pretty floored as I believe it's quite an unethical circumstance. She is certain they are taking tips, which was my first question to her. Additionally, they have her classified as a 1099 contractor that entails making food, serving, and any other duties that come with running a restaurant.
I'd like to pass on some sound advice to her. Can anyone weigh in?
Advice on how to approach them? It sounds like she already has and was given a brush off. Approach them again and there's a good chance your friend will become unemployed.
One of my best friends manages a small restaurant with a mutual friend of ours (daughter to the owners). She came to me a few days ago certain that the owners of the restaurant, who are present a few days each week, are taking shares of the tips from a pooled jar. She mentioned it to the owners daughter and her response was "that's how my parents have always done it. If we split the tips equally then everyone will get paid $2.75/hour."
She asked me for advice on how to approach them about this and to be honest I didn't know what to say. I was pretty floored as I believe it's quite an unethical circumstance. She is certain they are taking tips, which was my first question to her. Additionally, they have her classified as a 1099 contractor that entails making food, serving, and any other duties that come with running a restaurant.
I'd like to pass on some sound advice to her. Can anyone weigh in?
State Department of Labor and the IRS. Both of them will investigate without saying who tipped them off.
If the owner is taking a portion of the pooled tips, (and not performing duties covered by the tip pool) it's a violation of federal law.
Start here: FLSA Tipped Employees
Go to page 2 and look under Tip Retention.
Oh, it's a federal thing. For some reason, I thought it was only on a state level! Yeah, it doesn't matter if a manager bussed a table, or brought a plate of food to the table. He's still NOT entitled to tips! Didn't make sense at first, but people were saying this is to prevent abuse (and it's not like owners and managers don't have other perks).
Quote:
Originally Posted by oceangaia
Advice on how to approach them? It sounds like she already has and was given a brush off. Approach them again and there's a good chance your friend will become unemployed.
This too. Even if done anonymously, it may come back to that friend. If they're not the only restaurant in town, it may be worth losing this job over (and doesn't sound like you'd want to work with these people anyways)
This too. Even if done anonymously, it may come back to that friend. If they're not the only restaurant in town, it may be worth losing this job over (and doesn't sound like you'd want to work with these people anyways)
Sometimes the theory doesn't match the reality. OP's friend should be able to file a legitimate complaint without repercussions however they better have solid evidence since they are dealing with a family business. It wouldn't surprise me if OP's friend doesn't get fired pretty soon just for bringing it up. If the owners know what they are doing is wrong they are going to get rid of any non-family that is aware of it before they can get solid evidence.
Oh, it's a federal thing. For some reason, I thought it was only on a state level!
States have the ability to enact state laws similar to the FLSA or they could just say it's a violation of state law to violate the FSLA. So employees may have state protections as well.
[quote=ackmondual;61066936]Yeah, it doesn't matter if a manager bussed a table, or brought a plate of food to the table. He's still NOT entitled to tips! Didn't make sense at first, but people were saying this is to prevent abuse (and it's not like owners and managers don't have other perks).
Under DOL's guidelines, owner/management sharing of pooled tips is proportionate to their active duties of those in the pool. So a manager that serves someone food or busses a table can't participate unless it's a regulars assigned function of their job to do those things as if in that position.
Quote:
Originally Posted by ackmondual
This too. Even if done anonymously, it may come back to that friend. If they're not the only restaurant in town, it may be worth losing this job over (and doesn't sound like you'd want to work with these people anyways)
One of the benefits of making a formal complaint is retaliation protection. Sure you'll be fired, but when the dust settles, the former employer may end up paying you damages such as lost wages, benefits, punitive damages, etc.
What is it she wants to do? Report them? Confront them? If she talks to them, why does she think they will stop, if they've "always done this" (I assume for years) and even their daughter doesn't seem concerned about it?
How sure is "pretty sure"? Has she seen them do it? Have they told her they do it? Do other employees know they do it? Can she prove they do it?
Quote:
Originally Posted by Rabrrita
One of the benefits of making a formal complaint is retaliation protection. Sure you'll be fired, but when the dust settles, the former employer may end up paying you damages such as lost wages, benefits, punitive damages, etc.
Sure, if they can't come up with another reason. OP's friend would do well to keep their nose extremely clean-- never arrive even 10 seconds late, make sure to be working every second, never have even the slightest altercation or disagreement with a coworker, always be dressed impeccably, be the very picture of politeness to the customers, never balk at any task they're asked to do, etc.
OK, so the plot thickens...no surprise there. The daughter of the owners came to her last year hoping that she would be willing to help her take over (I assume as partners) so the parents could retire at some point. That is her current stake in it but she has nothing in writing. Because she doesn't have anything in writing I told her she has no stake or claim to anything in the future. Apparently, none of them have real experience running a business the correct way from what I gather. It's a mom-and-pop kind of business.
As far as the tips are concerned, she is positive. She said this year they have more than doubled in sales from last year and have never seen this much business ever, (according to the owner's daughter) and it's been consistent. She said last Saturday there was over $100 in tips in the pooled tip jar and she only walked away with $6, so did the other 3 girls. Additionally, she knows the other girls get paid under the table (while she gets a check and 1099), but she thinks the owners are paying them with tip money from the jar that might be left over. But I told her there's no way to prove that.
Thank you for the feedback. I have given user reputation points. I plan on printing the responses to share with her.
State Department of Labor and the IRS. Both of them will investigate without saying who tipped them off.
Happened to me at a couple very high-end restaurants I (briefly!) worked at. Employers kept ALL the tips.
I reported them to Dept. of Labor and IRS. Nothing happened. They could care less. Another place didn't even PAY the servers (tips only) and neither agency cared about that either.
None of these agencies exist for the worker.
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