Sunday, June 17, 2012

Should restaurants be barred from taking a share of a server’s tip?

When I was working as a server I remember when it was a pool system, and that the owner was stealing our tips to pay for lazy managers. We all know that servers' tips should not be used to pay for managers' salaries at restaurants in the state of California. This is ILLEGAL.

What many employees do not know is that tips belong to the employee, not the employer. This means that supervisors cannot share in tip pools. Essentially, tips can only be share with employees who do not have the authority to hire or fire employees or to supervise or direct the actions of other employees. Furthermore, employers cannot deduct money from wages because of earned tips, nor can tips be used to compensate business owners.

As part of a common industry practice called “tipping out,” many restaurants require their servers to fork over a portion of their gratuities. While these tip-outs are typically meant to be divvied among hosts, bussers, and other staff, the practice is also abused by employers who take a cut for themselves. Some restaurant owners take tips from waiters to pay managers. This is obviously an illegal practice that some restaurant owners abuse when they are too greedy and operate a scam.

What is so unfortunate is that restaurant diners do not even know that the gratuities they voluntary leave to the waiters are being stolen by some restaurant owners.  In Los Angeles and all over the country, many restaurant workers, in my view, are getting ripped off, and are used as slaves. I would go further and say that restaurant patrons are being ripped of as well as they are not aware that those tips do not go directly to the employees. There is absolutely no reason for restaurant owners to take gratuities from their employees.

This is just greed, and only to pay for their lavish lifestyle

In New York State, where authorities took the rare step of regulating gratuities in 2011, making it illegal for employers to appropriate tips, a flurry of lawsuits have emerged from servers alleged violations. Even top names in the restaurant world have been ensnared. New York magazine’s Grub Street website reported in November that a class-action lawsuit was filed against celebrated chef Eric Ripert, co-owner of Le Bernardin restaurant, and partner Maguey Le Coze, in part, for allegedly mismanaging tips. Star chef Mario Batali and his associate Joseph Bastianich agreed to pay $5.25-million (U.S.) to settle accusations by employees that they illegally took part of their tips to supplement their profits.

Restaurant workers who believe they are being ripped off by their employers should not hesitate to contact the labor department and a lawyer who has experience in defending the rights of restaurant workers.

What greedy and unethical restaurant owners should understand is that by ripping off their own workers they have are short sighted and won't go very far in business. When you rip your employees off, you also rip your clients off. Unhappy employees, cannot go above and beyond to delight the customers since they are being short changed by their employers.

Also workers will never recommend anyone to dine at a place where they are being ripped off.

Even worse for restaurant owners who steal the servers' gratuities is that they should be very careful today as with social media the news can spread out very fast. With social media the power has been transferred to the people. And they can strike back at their wish, and destroy your reputation in minutes by spreading the news all over the Internet to reach thousands or millions of people who will support their cause.




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