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Employment Law/tip calculation

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Question
My friend just began work as a server in a Maryland restaurant, a franchise. She says she must tip out the bartenders and the hostess. But the 3% she must tip out is not based on her total tips, but on her total sales, which she believes is excessive. I'm unable to find any information concerning this policy online, hence this question. Can an employer in Maryland do this?

Answer
Hi Josie,

I do not deal with tipped workers. I know that she must earn minimum wage and any tips that she tips out do not count toward her minimum wage amount.

http://www.nolo.com/legal-encyclopedia/maryland-laws-tipped-employees.html

https://www.dllr.state.md.us/forms/esstipinfobrochure.pdf

It does say the following in the above link form Maryland Department of Labor.

Pooling Tips?
Pooling tips is allowed under the tip credit
provision. However, the employer must first
notify the employee of any tip pooling policy
and can only calculate tips received based on
the final amount received by the employee
from the tip pool.

This tells me the tip pool is only on the amount of tips and not on the amount of sales.

Since I have not personally dealt with tipped employees I would suggest your friend or you call the Department of Labor in Maryland and ask them about it. Their job is to assist employees.

www.dllr.state.md.us/labor/wages/

For additional information, contact:
Department of Labor, Licensing and Regulation
Division of Labor and Industry
Employment Standards Service
1100 N. Eutaw Street - Room 607
Baltimore, MD 21201
410-767-2357
Fax: 410-767-7303
e-mail: dldliemploymentstandards-dllr@maryland.gov

I hope this helps.

Shirley  

Employment Law

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Shirley McAllister, CPP, PHR

Expertise

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).

Experience

30 years in Payroll and Human Resources

Organizations
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

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

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