How Do Tip Sharing Laws Work in New York?

tip jar coins

Certain types of employees heavily rely on tips to make up a portion of their salary. If this is your case, then you must be aware of the federal and state regulations that regulate your tip sharing. If you are not familiar with these laws, then you may miss out on the payment that you rightfully deserve. Continue reading to learn how tip sharing laws work and how an experienced New York wage & hour lawyer at Bell Law Group can help fight for your rights.

What are New York’s tip sharing laws?

According to the Department of Labor, a tipped employee is one who receives $30 or more in tips each month. And as a general rule of thumb, you should know that federal and state law recognizes tips as belonging to you, as an employee, and not your employer.

However, your employer may still require you and their other employees to participate in tip sharing. More specifically, tip sharing is a formal arrangement that allows your employer to collect all gratuities and then redistribute the money equally amongst you and their other employees. You will only be required to participate in the tip sharing if you are in a position that typically receives tips. For example, you may have to enter into tip sharing if you are a waiter or waitress but not necessarily if you are a hostess at a restaurant.

What should I do if I am not receiving tips?

If you believe that your employer or your manager is dipping into the tip pool or otherwise withholding the tips that you rightfully earned, then you may be able to take legal action against them. You must understand that federal and state law prohibits employers and managers to take a portion of their employee’s tips.

Although there are some rules you must understand before you go ahead and file your claim. For one, New York law permits employers to satisfy the minimum wage requirement by combining the cash wage they pay you with a credit or allowance for tips that you receive from customers. This means that your employer may be allowed to pay you less than New York’s minimum wage requirement so long as you accumulate enough tips to make up the difference. However, if your combined cash wage and tip credit still do not meet your employer’s minimum wage commitment, then this may call for a lawsuit.

You deserve to receive the tips and overall payment that belong to you and that you worked so hard for. So, do not hesitate in reaching out to a skilled New York employee rights lawyer today. We look forward to meeting you in your initial consultation.

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