• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

McOmber McOmber & Luber

Business & Employment Lawyers Red Bank & Marlton New Jersey

(732) 842-6500
  •   Free Consultation
  • Home
  • Firm Overview
    • History of the Firm
  • Practice Areas
    • Business Law
      • Business Law Practice Areas

      • Business Formation
      • Buy-Sell Agreements
      • Commercial Disputes
      • Dispute Resolution and Arbitration
      • Shareholder Disputes
    • Collections
      • Collections Practice Areas

      • Commercial Collections
      • Debt Collections
      • Judgment Enforcement
      • Personal Guarantee
      • Promissory Notes
    • Employment Contracts
      • Employment Contacts Practice Areas

      • Confidentiality and Non-Disclosure Agreements
      • Executive Agreements
      • Non-Compete Agreements
      • Severance Packages
    • Employment Discrimination
      • Employment Discrimination Practice Areas

      • Age Discrimination
      • Americans with Disabilities ACT (ADA)
      • Disability Discrimination
      • Gender Discrimination
      • HIV or Aids Discrimination
      • Hostile Work Environment
      • LGBT Discrimination in the Workplace
      • Pregnancy Discrimination
      • Racial Discrimination
      • Religious Discrimination in the Workplace
      • Sexual Orientation Discrimination in the Workplace
      • Wage Discrimination
      • EEOC Claims
    • Employment Law
      • Employment Law Practice Areas

      • At-Will Employment
      • EEOC Claims
      • FMLA
      • New Jersey Division on Civil Rights
      • New Jersey Family Leave Act
      • New Jersey Law Against Discrimination
      • New Jersey Paid Sick Leave
      • Reduction in Force
      • Unemployment Compensation Appeals
      • Wrongful Termination
      • Misclassified Employees
      • Medical Leave Benefits in New Jersey
      • Work From Home Laws
    • Litigation
      • Litigation Practice Areas

      • Civil Litigation
      • Contract Litigation
    • Class Actions
      • Class Action Practice Areas

      • Equal Pay Act
      • Overtime Pay
      • Tip Skimming
      • Misclassified Employees
    • Personal Injury
      • Personal Injury Practice Areas

      • Nursing Home Negligence
      • Product Liability
      • Uber Assault, Fraud, and Harassment
    • Real Estate
      • Real Estate Practice Areas

      • Land Use, Planning and Zoning
    • Sexual Harassment
      • Sexual Harassment Practice Areas

      • Hostile Work Environment Sexual Harassment
      • Housekeeper Sexual Harassment
      • LGBT Sexual Harassment
      • Medical Professional Abuse
      • Quid Pro Quo Sexual Harassment
      • Sexual Abuse
      • Sexual Harassment in Doctors’ Offices and Healthcare
      • Sexual Harassment in Nursing
      • Sexual Harassment of Administrative Assistants
      • Sexual Harassment of Housekeeping and Janitorial Workers
      • Sexual Harassment Retaliation
      • Sexual Harassment in Dental Offices
      • Sexual Harassment in the Entertainment Industry
      • Sexual Harassment in Bars and Restaurants
    • Wage & Hour
      • Wage & Hour Practice Areas

      • Equal Pay Act
      • Overtime Pay
      • Tip Skimming
      • Tipped Employees
    • Government Fraud/False Claims Act
      • False Claims Act Practice Areas

      • Qui Tam Action
      • Prevailing Wage & False Claims Act
    • Whistleblowing & Retaliation
      • Whistleblowing & Retaliation Practice Areas

      • Conscientious Employee Protection Act (CEPA)
      • Whistleblower
      • Workplace Retaliation
      • Consumer Fraud Attorney
    • Other Legal Services
      • Other Legal Services

      • Estate Law
  • Our Successes
    • Client Reviews
    • Verdicts & Settlements
    • Representative Clients
  • Team
  • FAQs
  • News
  • Office Locations
  • Contact Us
Tipped Employees | Header Image | McOmber McOmber & Luber

Tipped Employees

Some employees earn tips or gratuities in addition to receiving an hourly wage from their employers. In NJ, these employees are subject to New Jersey Wage and Hour Law and the New Jersey Payment Law, which differs from federal law in several respects.

Under NJ law, tipped employees have the same rights as hourly employees and salaried employees regarding fair pay, benefits, protection from discrimination, and the right to engage in protected activities without fear of employer retaliation.

In cases of wage & hour violations, the employment lawyers at McOmber McOmber & Luber are here to help make sure that tipped employees are paid what they are entitled to under the law.

Do New Jersey Tipped Employee Laws Apply to Your Job?

The legal definition of a tipped employee is one who usually receives at least $30 in tips per month. An employee who customarily and regularly receives more than $30 in tips over a one-month period, but occasionally does not, is also considered a tipped employee.

What is the Minimum Wage for Tipped Employees?

Under New Jersey Wage and Hour Law, an employer is permitted, but not required, to apply up to a set maximum amount of an employee’s tips toward the employer’s obligation to pay the full state minimum hourly wage. This is called taking a tip credit. The maximum tip credit allowed under the NJ Wage and Hour Law is scheduled to increase annually through 2024.

Tip skimming refers to the unlawful practice of restaurant owners or managers taking a portion of tips that belong to the restaurant’s employees. Tip skimming normally coincides with tip-pooling, the practice of sharing tips between the staff, including servers, waiters, bartenders, chefs, and dishwashers. When tip-pooling is utilized, owners and managers can easily skim tips from the pool without employees’ knowledge. Some owners and managers also attempt to conceal their tip skimming in pay-stub deductions labeled “meal credits” or “admin fees”.

Ways to Detect Unlawful Pay & Tip Skimming

Detecting tip skimming can be difficult unless you know what to look for. Some of the more common warning signs of tip skimming include:

  • An hourly wage below $5.13
  • Earning below minimum wage ($13.00 per hour in New Jersey)
  • Significant and unclear payroll deductions
  • Unclear, confusing, or “fly-by-night” tipping procedure
  • Tipping procedure that changes frequently
  • Meal deductions that are greater than the cost of the food

Additionally, by keeping detailed records of your hours and tips, and discussing any discrepancies with your coworkers, you will not only be able to detect tip skimming or other unlawful behavior, but also have evidence of how often this has occurred, and how much you (or your coworkers) are owed.

Legal Remedies to Recover

If you are a tipped employee and believe your restaurant illegally tip-skimmed or withheld your earned wages, McOmber McOmber & Luber, P.C. can help you recover the earnings you deserve. Generally, you can sue your employer for unfair business practices, fraud, and misrepresentation. Furthermore, certain wage and tip violations can warrant criminal prosecution by the State of New Jersey.

After complaining or reporting tip-skimming or unlawful wages, any retaliation or adverse employment actions – which can include termination, reduced hours, demotion and more – is unlawful. Employers who retaliate against tipped employees who complain or report unlawful wages, may face a whistleblower or retaliation lawsuit.

Retaliation against an employee who reports labor law violations is illegal, and there are penalties for employers who engage in this unlawful practice, including requiring them to provide you with the pay that you were wrongfully denied.

Seeking Legal Counsel and Representation

If you believe that you are a victim of tip skimming or other wage and hour violations, it is imperative to consult with an experienced and reputable employment litigation lawyer. With offices in Red Bank, Marlton & Newark, the wage and hour lawyers at McOmber McOmber & Luber, P.C. represent clients across the state. Contact us today for a free consultation.

Primary Sidebar

Related Practice Areas

  • Wage & Hour Attorney

Red Bank Office

  • 54 Shrewsbury Avenue, Red Bank, NJ 07701
    732.842.6500
    732.530.8545
    info@njlegal.com

Marlton Office

  • 39 E. Main Street, Marlton, NJ 08053
    856.985.9800
    856.263.2450
    info@njlegal.com

Newark Office

  • 60 Park Place Suite 307, Newark, NJ 07102
    973.878.9040
    973.310.5216
    info@njlegal.com

Office Locations

Red Bank Office

  • 54 Shrewsbury Avenue, Red Bank, NJ 07701
  • 732.842.6500

Marlton Office

  • 39 E. Main Street, Marlton, NJ 08053
  • 856.985.9800

Newark Office

  • 60 Park Place Suite 307, Newark, NJ 07102
  • 973.878.9040

Footer

McOmber McOmber & Luber

McOmber McOmber & Luber is focused on delivering exceptional representation and responsive client service. We tailor innovative and cost-effective solutions for each matter we handle.

Quick Links

  • Home
  • Firm Overview
  • Practice Areas
  • Team
  • Office Locations
  • FAQ
  • Press
  • Our Successes
  • Contact Us
  • Awards & Honors
  • Civil Certified Attorney
  • Careers
  • Blog
  • Client Reviews

Practice Areas

  • Business Law
  • Collections
  • Employment Contracts
  • Employment Discrimination
  • Employment Law
  • Litigation
  • Personal Injury
  • Real Estate
  • Sexual Harassment
  • Wage & Hour Attorney
  • Whistleblowing & Retaliation
  • Other Legal Services

Copyright © 2023 · McOmber McOmber & Luber, P.C. All Rights Reserved

  • Privacy Policy
  • Site Map
  • Log In

No aspect of this advertisement has been approved by the Supreme Court of New Jersey.

This website’s information does not, and is not intended to, constitute legal advice or form an attorney-client relationship. All content is for general information and may not constitute the most up-to-date legal information. You should consult with an attorney for advice on specific legal problems. Read the full Disclaimer here. Your Privacy Choices Notice at Collection

Free Consultation