tip sharing

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In recent years, one significant issue that has plagued industries employing tipped employees is whether the employers must ensure that tipped employees retain all of their tips even if the company is not using the employee’s tips to satisfy part of the minimum wage pursuant to the FLSA’s “tip credit” provision, 29 U.S.C. § 203(m).…

In cases challenging participation of food service workers other than the quintessential roles with which most diners are familiar (e.g., server/waiter, busboy, etc.) in tip sharing/pooling/splitting arrangements, some courts focus on whether  the position lacked sufficient direct customer interaction to warrant receipt of tips.  See generally Kilgore v. Outback Steakhouse, 160 F.3d…

Providing guidance on some longstanding ambiguity regarding the meaning of Nevada’s statute on tip pooling, Nevada’s highest court ruled that an employer may impose mandatory tip pooling on employees and determine to which employees tips may be distributed. The Wynn casino’s tip pooling policy, which was reviewed by the Court and required pooled tips to be…

On May 28, 2013, New York’s highest state court, the New York Court of Appeals, will hear oral argument regarding the scope and application of New York Labor Law 196-d and its tip splitting provisions to Starbucks’ tip pooling practices. The court’s analysis of these issues, which came to the court as certified questions from…