McOmber McOmber & Luber

Business & Employment Lawyers Red Bank & Marlton New Jersey

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Is Your Employer Pocketing Your Tips?

As an employee, you work hard to provide excellent customer service and earn gratuities. Unfortunately, some employers may pocket some of those tips, which is unfair and illegal. This guide explores the federal and New Jersey laws regarding tipped employees to help you recognize and report tip violations. You deserve full compensation for your hard work and dedication.

Related FAQs

  • What Are Your Rights as a Restaurant Employee?

    About 34% of workers in the restaurant sector quit their jobs or want to do so. Even though this is an excellent way to get experience and make money, working at a restaurant is no walk in the park. The work environment is quite stressful, and the wages aren’t the best.

    To make sure you’re being treated properly and lawfully, it’s crucial to be aware of the privileges you have as a restaurant employee. Some restaurants take part in unlawful behavior that infringes on the rights of employees to make more money.

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  • What Happens to Employee Tips?

    The truth is that it depends on the restaurant that you’re in. Different restaurants have varying tipping policies.

    Some restaurants may have pooled tips, while others may have direct tips. These two are the most popular options for restaurants around the country.

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  • What’s a Tipped Employee?

    A tipped employee is a legal term that’s used to describe a career field that relies on tips in a major way. This is someone who receives at least $30 or more per month in tips. These kinds of jobs are almost exclusively in the service industry.

    Read More

  • What’s the Tipped Minimum Wage?

    The tipped minimum wage for New Jersey is $5.26 per hour. As you can see, this is significantly lower than the standard minimum wage in the state. However, it’s much higher than most other states in the US.

    Read More

  • How to Protect Your Tipped Employee Rights?

    • Know your rights: Familiarize yourself with the laws and regulations governing your industry and your state’s tipped employee-specific laws.
    • Keep accurate records: Keep a record of tips received and ensure your employer records them appropriately.
    • Seek legal advice: If you have experienced wage theft or other violations of your rights, seek legal advice from a qualified attorney.
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  • Which Job Interview Questions are Off Limits?

    The law prohibits employers from basing hiring decisions on protected characteristics of a job candidate, such as race, age, gender, religion, or disability. In fact, interviewers should not even ask questions about protected characteristics during a job interview, because there is no way to separate the question from the hiring decision.

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  • Can Employers Change Wages?

    Under state law, employees are entitled to change their employees’ wages. They need to give you advance notice and it can’t be done retroactively. However, they may not reduce your pay below the state minimum wage if you are in a qualifying job.

  • How Many Hours Should You Work Each Week?

    Under the new legislation, a standard working week in most jobs is 40 hours. This means that you are entitled to overtime pay for every minute you work over 40 hours.

  • What Protects Workers From Discrimination?

    If you’re an employee, you are legally protected against workplace discrimination, but unfortunately, too many people don’t know their rights and some employers count on that fact so they can continue manipulating and mistreating workers.

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  • Are Noncompetes Enforceable? 

    While many may view noncompetes as unethical and questionable, there is some good news. Just because an employee breaks their noncompete does not mean they are in peril of consequences. A court will decide whether to uphold noncompete clauses depending on the situation. 

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