The employer is required to pay all credit card fees on tips {employees are entitled to receive the full amount of the tip left by the customer and Labor Code 351 requires employers to give tips to employees by the next payday after the tip is paid}
The state requires employers to pay all employees (including tipped workers) at least the full state minimum wage of $14 per hour, as of January 1st, 2021. The county of Los Angeles has varying minimum wages. For more information, check out their minimum wage ordinance site.
Under California tip law, a tip is any money that is
– Paid, given to, or left for an employee
– By a customer of a business, and
– Is not part of the amount the customer was required to pay for services, goods, food, or drink.
NOTE: Some businesses will add a required “service charge” to a customer’s bill. Unlike with a traditional tip or gratuity, the customer has no choice but to pay this amount. Currently it is not clear if mandatory service charges are tips. California courts have made conflicting statements on whether they are included under Labor Code 351, But if service charges are tips under California tip law, then they must be passed on to employees. {Labor Code 351 LC is the main California employment law dealing with tips and gratuities}.
Tip Pooling is LEGAL in CA. Tips can be shared with: shift supervisors, hosts, bussers, bartenders, etc who are part of chain of service. However, tips cannot be shared with managers {anyone with hire/fire ability}.
Employees cannot sue their employers under California’s main tip law, Labor Code 351 LC.25, but there are other legal theories that could work to sue for a violation of California tip law.
Even if you are not represented by a union, federal law gives you the right to band together with coworkers to improve your lives at work – including joining together in cyberspace, such as on Facebook.
Using social media can be a form of “protected concerted” activity. You have the right to address work-related issues and share information about pay, benefits, and working conditions with coworkers on social media. But just individually griping about some aspect of work is not “concerted activity”: what you say must have some relation to group action, or seek to initiate, induce, or prepare for group action, or bring a group complaint to the attention of management.
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