Employment Law/Tipping


I work at a doggy-daycare and boarding facility in Minnesota. I work with the dogs (i.e. playing/feeding/medicating and giving them love and attention), while our managers work in the office up front dealing with the clients and checking in and out the dogs and cats. Considering this is a service related job, looking after the clients pets, when they are paying up front they have the option to give us tips, but it's not required. I've been with this place for a while now and from the sound of it many of the owners do tip, and tip well. From the styles/brands of cars many of our clients drive it leads me to believe they have the money to spend, granted that is partly just conjecture. Anyways, the tip money, according to our owner, goes towards 'fun events' such as 'parties' at small entertainment businesses near our work. The cost of these parties seems minimal due to the locations they've been held at, such as bowling alleys and picnics. They provide some food and beverages, as well as the few hours of entertainment, like a few rounds of bowling and some pizza. Considering we have these events MAYBE 4 times a year max (estimation), I cannot believe that these costs cover the total of our tip money considering that about half of the employees attend the event at the most. The rest of the tip money just sits somewhere, if our owner hasn't just pocketed the rest of the money and called it a day? I suppose my summation of this would be that I personally have not received tips besides a client physically handing me cash, but considering many of our clients keep a credit card on file with us, I don't know where the rest of the money is going. I receive an hourly wage, but since this is a service-ish type of job I feel that I would much rather have the tips just go towards my paycheck rather than an unknown pot of tips in my owners office and get a miniscule 'party' every so often to keep us content? Any information you can provide me with would be much appreciated!

This is an illegal use of tips. Tips belong to the employees and should not be taken and used for this reason.

If you call your local department of labor they will call your company and they will explain to them how tipa are legally handled in your state and they will tell them to whom the tips must be paid.


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Shirley McAllister, CPP, PHR


I can answer questions about payroll laws and payroll tax laws and Human Resource laws and agencies. I can answer federal payroll and human resource law questions and most states; I do not have a knowledge of the local taxes for cities and counties within the state. If and when I can I will try and send you the website where you can reference the answer and where you can obtain more information as well as a contact number if needed for that particular agency. Some agencies I have worked with are IRS, Department of Labor (federal and state), Revenue Canada (and provincial governments), Inland Revenue, OSHA (0ccupational Safety and Health Administration); Social Security Administration and National Child Support as well as other agencies in Payroll and Human Resources. Some Laws I am particularly familiar with are FLSA (Fair Labor Standards Act), ADA (Americans With Disabilities Act), FMLA (Family Medical Leave Act) COBRA (Consolidated Omnibus Reconciliation Act ) , QDRO's, QMCSO's, and other support orders and garnishments, USERRA (Uniformed Services Employment and Remployment Rights Act,PPA Act (Pension Protection Act of 2006, As well as most other employment type acts. I am also well versed in the Title V Civil Rights Act and the HIPAA (Health Insurance Portability and Accountability Act).


30 years in Payroll and Human Resources

SHRM (Society of Human Resources) APA (American Payroll Association) DOLEA (Department of Labor Employers Association) CPA (Canadian Payroll Association) NAPW (National Association of Professional Women) The Mentoring Network

PHR Certification in Human Resources CPP Certification in Payroll in U.S. Payroll Administrator and Payroll Supervisor certification in Canada

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