Is it legal for restaurant owners to take tips?

Question

The restaurant I work at is owned by a couple who come in and work on the busy nights for a few hours. We pool tips, so the kitchen and waitstaff divide the overall tips. The owners sometimes tip in for a few hours here and there, and I was wondering what other people think of this situation.

Answer 1

It may be LEGAL but that doesn't make it ethical! Waitstaff put in LONG, arduous hours, dealing with customers, remembering stuff I couldn't handle if you schooled me for WEEKS---in short, it's a talent!

For restaurant owners to take advantage of the ONE THING THAT MAKES WAITING TABLES WORTHWHILE (TIPS)...is not only low-down but will eventually drive them under.

I worked at a place like that, where the owner thought HE would get the bulk of the profits. He and some other waiters resented the fact that I got tipped better, with less experience.

I replied that maybe, if the waitstaff treated the customers better, they'd get similar tips.

The question is further muddied byb the fact that the owner USUALLY makes waiters give bus-staff and washwers a % of the overall tips.

Not only that, we were making $2.53./hr.! How is it remotely fair for the owner, who reaps all the benefits, to take tips when they HAVE NOT WAITED TABLES???!

Answer 2

It may be legal, but I think that is totally wrong.  I had a manager (salary) who use to do it, but he got so much flack that he decided to quit dipping into the tips after a few harassments.  Most wait staff in a restaurant/bar are not even making minimum wage due to getting tips, and the higher up need to make their wages and leave the tips for the hard working.

Answer 3

well i dont see why not??? if i own a resturant im gonna want to earn some extra moo-lah so that i can do something to upgrade the resturant or do something for my self or for my family!!!

Answer 4

yes its legal

Answer 5

if they're working too, why not!

yes it is legal. unfair, sure I see the reason for that opinion, but legal none the less.

Answer 6

I think it's legal because this is a common practice. When I worked at mandarin, they gave us 10% of the tips and they gave the old employees the other 40% each.... so that they wouldn't feel bad about training us.

Answer 7

Yes, it's legal

Answer 8

yes! they help out...

Answer 9

Legally, tips should be reported as income for tax purposes by the recipient -- this is one of the reasons that I don't think it's right because a person should not have to pay taxes on tips which have been divided.   Also - if the whole staff agrees to pool tips - then it's ok.  If the owners do not work as much as all of the workers who pool their tips - then the owners should not participate ... plus - the owners are also taking part of the tipping wages from their own employees who they are supposed to pay .. this doesn't sound exactly ethical in ways ... in my opinion, the owners should fend for their own tips separetely from their hired employees.

Some restaurants pool tips and divide them to include employees who lack customer contact.

At some restaurants, agreements among the staff require the servers to tip out members of the support staff (kitchen, bartender, and busser) at the end of their shift; this means that servers pay a certain fixed percentage of their sales (most often a portion less than 15 percent of total sales) to the other staff. Thus when a patron leaves a small tip, it results in the server having to receive less from the tipping pool than other staff.

In some jurisdictions, tipped workers qualify for a lower statutory minimum wage from the employer, and therefore may supplement deficient pay with tips. For example, the United States Internal Revenue Service (IRS) requires restaurant employers to ensure that the total tip income reported to them during any pay period is at least eight percent of their total receipts for that period. If the reported total is below eight percent, employers must allocate as income the difference between the actual tip income reported and eight percent of gross receipts.

Answer 10

yes it's legal, but is it ethical, that is the question. It sort of feels like they are double dipping to me. I mean here they are hopefully making a profit from the restaurant and then take part of the tips from the very people who are working to help keep the door open. Doesn't feel right to me, if I go to hairdresser and the person who owns the salon cuts my hair I don't leave a tip. It's not done, It's not proper.