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Employment Law/regarding tipping out other employees


So this is my question. I recently started working at a restaurant and they have an interesting tip out agreement. At the end of my shift I am required to tip out 4% to the bartenders and 4% to the rood runners. I feel this is very high and I was recently told by fellow employees that the tip out is not even given to the food runners but that the owner keeps it for himself. I work in Maryland if that makes any difference. Is this legal, what should I do about it? Last night I made $155 in tip and had to tip out a most $50. I feel like I am getting ripped off. Please help

Here are the rules for tipping out in Maryland:

Tip Pooling
Many states allow employers to require tip pooling or “tipping out.” All employees subject to the pool have to chip in a portion of their tips, which are then divided among a group of employees. The employee must be able to keep at least the full minimum wage. (In other words, if the employer takes a tip credit, the employer can count only the tips the employee gets to take home against its minimum wage obligation.)
According to the federal Department of Labor, only employees who regularly receive tips can be part of the pool. Employees must receive notice of the tip pool. Employees can't be required to share their tips with employees who don't usually receive their own tips, like dishwashers or cooks. And no employers are allowed in the pool: Tips from a tip pool can't go to the employer or, in some states, managers or supervisors.
Customer Walkouts
In 2013, Maryland passed a law answering a question important to servers everywhere: Who pays for the "dine and dash?"
Some employers dock the pay of wait staff when a customer leaves without paying the bill. In some states, there are general laws that address which job-related costs an employer can pass along to employees and which must be paid by the employer. In Maryland, however, no legal parsing is required. Maryland law explicitly prohibits employers from requiring tipped employees to pay or "reimburse" the employer for charges customers don't pay. Employers also have to post a notice informing employees of the law.

It is illegal for the owner to take any of the tips.

You can verify this with the Maryland Department of Labor


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

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