How to Report Tip Skimming

Tip skimming is a form of wage theft that occurs when employers or managers unlawfully take or withhold tips that employees have earned. This can include taking a portion of tips, redistributing them unfairly, or using them to offset business expenses. Learning how to report tip skimming is the first step towards finding justice.

Is It Illegal To Withhold Tips From Employees?

Yes, it is illegal to withhold tips from employees. Tip skimming is a form of wage theft, and employers who unlawfully withhold tips from employees may be subject to legal action, including lawsuits and financial penalties.

Employees who believe their tips have been unlawfully withheld by their employer should get in touch with a trusted wage and hour attorney, as you may have grounds to pursue legal action. This includes filing complaints with the Department of Labor or filing a lawsuit with their help.

What is the New Jersey State Wage Payment Law?

The New Jersey State Wage Payment Law ensures that employees are paid what they are owed. It requires employers to pay workers on a regular schedule, provide statements of earnings and deductions, and prohibits withholding wages without proper authorization. If employers fail to comply, they can face penalties and be required to pay back wages. This law protects workers’ rights to timely and accurate compensation.

What is the FLSA?

The Fair Labor Standards Act (“FLSA”) is a federal law that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards. It provides specific regulations for tipped employees, including guidelines for tip credits and tip pooling, and prohibits employers from retaining any portion of tips.

How to Report Tip Skimming

If you suspect you are a victim of tip skimming, there are a few steps you can take to deal with the situation:

• Gather Evidence: Record dates, amounts involved, and any communications with employers or managers.
• Internal Reporting: Report the issue to your supervisor or HR department; an internal resolution can be the quickest and simplest approach.
• File a Complaint with Authorities: If the internal reporting process doesn’t yield appropriate results, you should consider filing an official complaint.
• Seek Legal Counsel: Skilled attorneys can help guide you and pursue appropriate legal action.

Should you need the help of an attorney, you may be able to pursue legal action and recover withheld or stolen wages from tip skimming.

If you work in NJ, you can file a wage complaint against your employer through the Department of Labor and Workforce Development. Additionally, you can file a complaint with the US Department of Labor, which enforces minimum wage, overtime, FLSA, FMLA issues, and more. However, your best option is to speak with one of our wage and hour lawyers as soon as possible.

Schedule a Consultation With Our Wage Theft Attorneys Now

Being denied the wages that you are owed, being asked to work overtime without compensation, or being denied time off that you are legally entitled to is more than frustrating — it is illegal. If you believe that your employer has violated your rights under state or federal wage and hour laws, we urge you to reach out to us. We have years of experience representing employees and will fight for your wages. Reach us today by phone or online for a free consultation.