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Employment Law/Managers sharing part of Gratuity


I work at a center in NY state that does public and private events, as well as a restaurant. I work in event staff and have many salaried managers that I answer to (Catering, Merchandise, Food and Wine).

As of the new year, we were told that we would now be receiving tips for private events. (originally 10/hr for 8.35/hr for private tipped events and 10/hr for everything else).

On the bill, they charge a service charge of 10% that the house takes (ok), and Gratuity charge of 10%. That Gratuity charge is shared between "people working the event"...but our salaried managers are included if they are in charge of the event, whether or not they set up or service the event.

We were also told that our resignation papers would be filled out for us to sign, if we did not agree with this arrangement or wanted to discuss this arrangement.

Am I being taken advantage of?
Thank you for your help

Salaried managers should not be included in the gratuity. This is unfair and in most states illegal. Can you do anything about it?

You can report it to the Department of Labor and they will investigate and if they find it is an illegal practice they will make it stop.

Can you be fired for doing so? Not in those specific terms, but if the company wants to fire you they will find a way. If all the servers went to the Department of Labor together in a united front than you could probably have a better chance, or you could try reporting in anonymously, however the Department of Labor does not take anonymous reports too seriously.

If you are fired for reporting illegal or unethical business practices you will be allowed to draw unemployment until you find another job.


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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

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