Header graphic for print
Class Action Blog Tp provide current legal information relating to class action lawsuits, including consumer fraud, consumer protection, securities and antitrust class actions

Tips Belong To Waiters, Not Restaurants

New York law requires that tips at restaurants go directly to wait staff, and New York law explicitly forbids restaurants from taking a percentage of the tip left for a waiter or waitress.  Nonetheless, some restaurants disregard the law and pocket a share of the tip.

Not only is such behavior unlawful, it amounts to theft from the wait staff and from the customer.  The waiter or waitress is often counting on the money to make ends meet.  And the customer intends to give a tip to his waiter or waitress, not to give extra money to the restaurant.

If you work as wait staff and your employer is taking a percentage of your tips, your employer may be violating your employment rights.  Pelase contact us to discuss your legal options.

  • Caroline

    Greetings:
    Although I live in Maryland, my current employer is committing this fraud full blown. They put in a ‘service charge’ on a banquet event, which amounts to 20% and then only pay the staff an hourly that does not match the gratuity. Furthermore, they’ll often understaff the event making it so one poor fool has to do the work of three and only making a ‘third’ of the service charge, the remaining two thirds going to the house.
    Who can I contact? What should I begin doing to report this fraud?
    Thanks