Boise Restaurant Tip Pool Case: Managers, Uniform Deductions, and 6,261
Quick answer: Managers and supervisors generally cannot keep employees’ tips, and uniform costs cannot reduce wages below the applicable minimum wage.
The recovery
The Wage and Hour Division recovered $366,261 in back wages and damages for 388 restaurant workers.
Managers in tip pools
Managers and supervisors generally cannot keep tips received by other employees. Their participation in a mandatory pool can invalidate the employer’s tip-credit arrangement.
A manager may generally keep a tip received directly for service solely performed by that manager.
Uniform deductions
Uniform and maintenance costs cannot reduce an employee’s wages below minimum wage or cut into required overtime, even when the employee signs an authorization.
Example
A server receives the minimum direct tipped cash wage and enough tips to reach minimum wage. A uniform deduction can create a shortage unless the employer reimburses or otherwise protects the legal minimum.
Audit checklist
- Identify every tip-pool participant
- Remove owners and managers
- Separate tips from service charges
- Review uniform costs
- Test each workweek
- Check state rules
Frequently Asked Questions
Can managers join a mandatory tip pool?
Generally no.
Can restaurants deduct uniforms?
Only without violating minimum wage or overtime.
Does employee consent cure the problem?
No.
Can a manager keep a direct tip?
Generally for service solely performed by the manager.
How much was recovered?
$366,261 for 388 workers.
Official Sources
This article is for general educational purposes and is not legal, tax, accounting, payroll, or employment advice. Rules can change and may differ by state, locality, occupation, employer, and employee circumstances.
This calculator is for educational purposes only. Consult your employer or a labor attorney for advice specific to your situation.