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Appeals Court Upholds Tip-Sharing Decision

Mar 8, 2016

tipsAccording to a ruling by a federal appeals court, employers cannot collect the tips of service employees such as waiters to share with the support staff, regardless if the worker is receiving minimum wage. The U.S. Ninth Circuit Court of Appeals upheld the United States Labor Departments rule from 2011 in a 2-1 decision. This is just one of the many issues that can occur in wage and hour disputes.

According to the case, the Ninth Circuit felt as though the initial rule was consistent with the goal of Congress to make sure service employees who receive tips are able to keep them. This decision mostly affects the states that currently require workers to receive the required minimum wage plus any tips they receive. This includes California, Washington, Minnesota, Oregon, Montana, Alaska, and Nevada.

It is currently not known how the decision would affect those who are support employees such as dishwashers in these states.

Some employers had used the tips an employee received to help them reach the minimum wage requirement and split the tips with support staff. The labor department has banned these types of employers. Rule supports believe that support staff members should be paid more so money doesn’t have to be taken from one worker in order to pay another.

It is important for employees to make sure their rights are protected at all times. Our labor law attorneys at Bailey Peavy Bailey Cowan Heckaman are paying close attention to decisions regarding this case. We want to make sure that individuals receive the wages they deserve and this includes the tips the make.

If you were denied wages by your employer, you may have the right to file a claim. Our firm can work with you and seek the amount owed to you. As a worker, you have various rights protecting you from injustice. Let us show you how we can help. Call us today.

Categories: Labor Law

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