Title: Rules of claiming tips
What are the rules for claiming your tips? My job has this thing where it won’t let you clock out unless you declare all credit cards plus 10% of your sells. If you only made credit card tips, your screwed when your clocking out.
Then there is an automatic 2 to 3 percent they take out for tip out. So now your walking out way less than what you make. As for cash not every one tips 20 percent yet alone 10 percent. Some people just don’t know how to tip. But still if they stiff you we pay the 2 to 3 percent tip out.
Hi Jenny,
Thanks for your question. I’m assuming that the purpose of the declaration at the end of your shift is for tax and tip pooling purposes, is that right? Does your employer provide any mechanism for claiming that you have received less than 10% in cash tips for the day?
If not, then it sounds like the rules currently being adopted by your employer will, in some cases, result in the employer withholding taxes for tips you never actually received—as would be the case if your customers left less than 10% in a particularly day. The same issue might also result in you contributing more to the tip pool than you actually owe.
If that is the case, then your employer’s rules might be unlawful. On days where your cash tips are less than 10%, your employer would arguably be depriving you of tips that are lawfully owed to you (in the form of an excess tip out). (See Labor Code, § 351.)
They might also be imposing deductions on your paychecks that are miscalculated or unlawful. In addition to tax consequences, that could result in a violation of California’s wage statement laws. (See Labor Code, § 226.)
Overall, the process you describe seems very problematic from a legal perspective. Of course, without knowing more facts about your situation and your employer’s procedures, it is impossible for me to know with any certainty whether your employer has violated the law.
In any event, I hope this information helps. Please remember that this information does not constitute legal advice and should not be relied on. Nor does it create an attorney-client relationship.
I wish you the best of luck in your situation!