Tip Basics for Employees

Tip jar with money

The basic rule of tips is that they belong to the employee, not the employer. Under California law, an employer cannot take any part of a tip that’s left for an employee.

This means that you can’t be forced to share your tips with the owners, managers, or supervisors of the business (who are all considered to be the agents of the employer).

Your employer also can’t count your tips towards its minimum wage obligations. In most other states, employers may pay employees less than the minimum wage, as long as the employees earn enough in tips to make up the difference (called a “tip credit”).

California does not allow employers to take tip credits. Employers must pay employees at least the California minimum wage for each hour worked, in addition to any tips they may receive.

The current minimum wage in California is $10 for smaller employers (those with up to 25 employees) and $10.50 for larger employers (those with 26 or more employees). And, if local law has a higher minimum wage, the employer must pay the higher rate. For example, the minimum wage in San Francisco is currently $13.

David Payab, Esq. from The Law Offices of Payab & Associates can be reached @ (800) 401-4466 or by visiting http://payablaw.com

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Why Choose Payab & Associates

  • Over 20 years of legal experience
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  • Tens of Millions of dollars recovered for our clients
  • No fees or costs unless we recover money for you
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Client Testimonials

  • The Law Office of Payab & Associates Thank you from the bottom of my heart.
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  • The Law Office of Payab & Associates I felt well represented with Mr. Payab as my attorney.
  • The Law Office of Payab & Associates It was really a pleasure having him as my attorney and I greatly recommend him.
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