My employer notified us to claim tips all the sudden. I been there 2yrs plus 4employees the owner decided who gets what based on his opinion. Is that legal , my tips are more than 45.00 a WK short for over 10 mths now.
Hi Rich,
Thank you for your question. I have edited it to remove some personal information you included (your phone number).
When you say that your employer is requiring you to “claim tips,” are you referring to reporting your tips to your employer and claiming them on your taxes? Tips are taxable income, so you should be paying taxes on your tips regardless of whether your employer requires you to report them.
I am not a tax lawyer, but employers are generally required to collect income tax, employee social security tax, and employee Medicare taxes on tips reported by employees. So, I don’t see any legal reason why an employer couldn’t require you to report your tips to ensure they are accurately complying with their withholding obligations. Again, though, I am not a tax lawyer, so I am not 100% sure about that answer.
In any event, I hope this information helps. If you would like to learn more about tips and tax reporting requirements, the IRS has an article on the topic here: Reporting Tip Income – Restaurant Tax Tips.
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!