Workers employed in industries where tips are standard rely on these tips to support their income. Employers that fail to ensure that their tipped workers are making at least minimum wage, or who do not allow their employees to keep their tips, are in violation of wage and hour state and federal law. An employer can be exempt from having to pay their employees minimum wage if they can prove that the employee is making at least the state mandated minimum wage.
Tip theft occurs when an employer takes the tips of the employees and gives them to higher level workers, such as supervisors and managers. Employers who take the tips that were part of a customer’s bill, or who force their employees to share their tips with other workers who are not eligible to earn tips, are also guilty of tip theft. Sidney L. Gold & Associates work with employees who have been victims of tip theft to bring suit against their employer and claim the compensation they were denied.