President Trump’s latest proposed legislation prevents employers, managers, or supervisors from collecting or retaining tips made by servers, whether they are paid a tipped wage rate or not. The bill specifically states:
“An employer may not keep tips received by its employees for any purposes, including allowing managers, or supervisors to keep any portion of employees’ tips, regardless of whether or not the employer takes a tip credit.”
“Any person who violates section 3(m)(2)(B) shall be subject to a civil penalty not to exceed $1,100 for each such violation…in addition to being liable to the employee or employees affected for all tips unlawfully kept.”
The new bill makes clear: employers can never keep their employees’ tips.
It also provides valuable remedies for restaurant employees affected by tip theft. Even before Trump’s new bill, employees have also been able to sue for the difference between full minimum wage and any tipped wage rate when their employers keep tips (i.e., the difference between $7.25 per hour and $2.13 per hour). Now, they can also sue for the tips wrongfully taken by their employer. And, as always, the law lets workers collect attorney’s fees from their employers, which allows wage lawyers to handle these cases without having to charge their clients.
Are you a restaurant employee that has been wronged by your employer? This new law might have important consequences for you. MSD has extensive experience in representing restaurant workers across the country. Complete the form below or call us at 513-651-3700 to initiate a free and confidential case evaluation.
Please note that submitting this form does not create an attorney-client relationship, and you should not use it to submit confidential information.
ADVERTISING ONLY: The information on this blog is not, nor is not intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.