It is not illegal for owners or managers to receive tips for work they perform. If the manager is waiting a table, they can receive that table’s tips.
Where the restaurant is owned by the workers, an individual worker-owner will still collect the tips for the work they perform. An owner who is not working that day has no claim to tips earned that day.
Are you sure? Even when I’ve been at places where the owner works, those owners haven’t taken tips, instead splitting any they receive among the other staff.
Employers, managers, and supervisors may not keep any portion of the employee’s tips, and may not participate in a tip pool. But yes, they can certainly accept their own tips.
Consider a small, mom-and-pop diner. Pop cooks, mom serves. They co-own the diner. They can certainly accept tips.
Hiring a part-time busboy as a worker doesn’t mean that he automatically earns all tips received during his shift. Mom still gets to collect tips for serving, pop still gets to collect tips for cooking. They don’t get to receive tips in their managerial capacity, only in their capacity as workers.
It is important to note: A traditional owner/manager only performs managerial work. This is the kind of scenario we are usually talking about when we hear about scummy managers stealing tips, but it is not the kind of scenario we are talking about here.
We are considering a restaurant that is owned by the workers. We are talking about a mom-and-pop diner with a whole lot of moms and pops doing the work.
Not necessarily. I don’t know about New York, but in Illinois it’s illegal for owners or management to receive tips.
It is not illegal for owners or managers to receive tips for work they perform. If the manager is waiting a table, they can receive that table’s tips.
Where the restaurant is owned by the workers, an individual worker-owner will still collect the tips for the work they perform. An owner who is not working that day has no claim to tips earned that day.
Are you sure? Even when I’ve been at places where the owner works, those owners haven’t taken tips, instead splitting any they receive among the other staff.
Employers, managers, and supervisors may not keep any portion of the employee’s tips, and may not participate in a tip pool. But yes, they can certainly accept their own tips.
Consider a small, mom-and-pop diner. Pop cooks, mom serves. They co-own the diner. They can certainly accept tips.
Hiring a part-time busboy as a worker doesn’t mean that he automatically earns all tips received during his shift. Mom still gets to collect tips for serving, pop still gets to collect tips for cooking. They don’t get to receive tips in their managerial capacity, only in their capacity as workers.
It is important to note: A traditional owner/manager only performs managerial work. This is the kind of scenario we are usually talking about when we hear about scummy managers stealing tips, but it is not the kind of scenario we are talking about here.
We are considering a restaurant that is owned by the workers. We are talking about a mom-and-pop diner with a whole lot of moms and pops doing the work.
Important distinction! All the places I worked where the owners also worked were pool houses, and as you said, owners can’t take from a pool.
One of the best guys I ever worked for used to say, “Those are your tips. When the restaurant does well, that’s my tip.”.