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TIPS: WHAT SERVICE EMPLOYEES NEED TO KNOW

MONEY BEING EXCHANGED

image of someone holding changeIf you receive tips as part of your compensation, you should know your legal rights.

The basic rule of tips is that they belong to employees, not the employer. Employees can’t be required to give their tips or any part of them to the company, except as part of a valid tip pooling arrangement — and even then, the tip pool must be divided only among certain other employees. The employer can’t be part of the pool.

It’s not as easy as you might think to figure out exactly how much of what a customer pays is a “tip.” For example, if the employer has to pay the credit card company a processing fee, California law requires that the employer has to give the employee the full tip indicated by the customer and pay the fee itself.

David Payab, Esq. from The Law Offices of Payab & Associates can be reached @ (818) 918-5522 or by visiting http://payablaw.com/

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    David provided professional services and insightful advice to us. I really appreciate the work he has done. I would highly recommend this law office.
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    David from Payab & Associates helped me out immensely when I was at a complete dead end and had no idea what next steps to take. He was able to guide me through all my options and he was so understanding of my situation throughout our communication.
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    I was looking for every possible solution to my legal inquiry, and David was really helpful. He is knowledgeable about many legal facets and took the time to educate me about the pros and cons of different choices I could make. He provided cheaper options I can take, which is important for me to consider as a student seeking legal advice. I didn't feel rushed and I felt heard, which is important for over-the-phone consultations. I see myself contacting David again, he's great!
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  • “Very professional and I would most definitely recommend them to friends and family”
    Payab & Associates was extremely helpful and supportive to me for my legal consultation. They answered every question I had in a very clear and understandable manner without getting too much into legal jargon. Very professional and I would most definitely recommend them to friends and family
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  • “Mr. Payab was very professional and I would definitely recommend his services.”
    I spoke with Mr. Payab through USC's legal consultation program, and he was very helpful and provided detailed advice and assistance. During the consultation, he explained the necessary processes to remedy the issues I was facing and provided tips on clauses to include in the documentation. Mr. Payab was very professional and I would definitely recommend his services. I will definitely contact him again for any future legal advice or consultations.
    - Sameer A.
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    Mr. Payab and his entire office are truly amazing and Heaven sent! Look no further when seeking counsel. Mr. Payab is extremely wise and I absolutely give him a five star, first class rating. He is the best in the business. The communication, knowledge, and work ethic is outstanding. I am truly grateful for his counsel. David really cares about his clients and it shows.
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