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Tip Basics for Employees

Employment law

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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  • “Patient and Thorough”
    David read through my contract and explained it thoroughly to me, answering every question that I had. He is knowledgeable and a very nice person, and I will be use him again.
    - Former Client
  • “I would highly recommend this law office.”
    David provided professional services and insightful advice to us. I really appreciate the work he has done. I would highly recommend this law office.
    - Former Client
  • “[David] was able to guide me through all my options”
    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.
    - Shwetha G.
  • “I didn't feel rushed and I felt heard, which is important for over-the-phone consultations.”
    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!
    - Taylor M.
  • “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
    - Andrew R.
  • “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.
  • “Mr. Payab is extremely wise and I absolutely give him a five star, first class rating.”
    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.
    - Shy D.
  • “He gave me the best possible advice and several different options.”
    David is amazing, he gave me the best possible advice and several different options. He explained the pros/cons of each option and let me decide how to proceed.
    - Sai A.

Why Choose The Law Office of Payab & Associates?

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