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Many other states, in recent years, have had to revise their position on tip pooling.  Presumably, due to abuses by employers.  The tip taking and forced tip pooling applied by some Nevada employers is contrary to usual and customary around the country.

In general, the other states have found the following:

 

    TIPS ARE THE SOLE PROPERTY OF THE TIPPED EMPLOYEE 

 

    EMPLOYEES MAY ONLY ENTER INTO A TIP POOLING AGREEMENT VOLUNTARILY AND WITHOUT COERCION OR CONDITION OF EMPLOYMENT BY EMPLOYERS

 

    EMPLOYERS AND MANAGERS/SUPERVISORS/'TEAM LEADERS' CANNOT PARTICIPATE IN TIP POOLS

 

If you, as a tip earner in any position in the State of Nevada , want to fix our current problems, these components must make it into the Nevada Revised Statutes.

 

Read the following to learn more.  

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TIP/GRATUITIY ISSUES FROM AROUND THE COUNTRY

 

ONLY RELEVANT SECTIONS HAVE BEEN SELECTED

 

 

Taken from the California Division of Labor Standards Enforcement and Labor Code 

 

Labor Code Section 351 prohibits employers and their agents from sharing in or keeping any portion of a gratuity left for or given to one or more employees by a patron.

The law further states that gratuities are the sole property of the employee or employees to whom they are given.

Tips belong to the employee, not to the employer.

Additionally, tip pooling cannot be used to compensate the owner(s), manager(s), or supervisor(s) of the business, even if these individuals should provide direct table service to a patron.

 

From a Massachusetts Wage and Hour poster

 

Tip pooling in which tips are distributed to any person not a wait staff, service employee or service bartender is prohibited.

Under no circumstances may management employees or owners receive any portion of their employees’ tips.

 

Minnesota Statutes 2007

 

For purposes of this chapter, any gratuity received by an employee or deposited in or about a place of business for personal services rendered by an employee is the sole property of the employee. No employer may require an employee to contribute or share a gratuity received by the employee with the employer or other employees or to contribute any or all of the gratuity to a fund or pool operated for the benefit of the employer or employees. This section does not prevent an employee from voluntarily and individually sharing gratuities with other employees. The agreement to share gratuities must be made by the employees free of any employer participation. The commissioner may require the employer to pay restitution in the amount of the gratuities diverted. If the records maintained by the employer do not provide sufficient information to determine the exact amount of gratuities diverted, the
commissioner may make a determination of gratuities diverted based on available evidence and mediate a settlement with the employer.

 

New Hampshire

 

Tip Pooling Regulations: Back in 1999, the Department adopted regulations stating that “tips are wages and are the property of the employee and shall remain with the employee, unless the employee voluntarily and without coercion agrees to participate in a tip pool which is not required or controlled by the employer.” It further states that, “employers are not precluded from administering a tip pool as long as the employer does not control it other than for accounting or for bookkeeping purposes.”

 

New York

 

The basic premises concerning “tips” are as follows: in no event may the employer or his/her “agent” share in the employees’ tips; an employee cannot consent to the employer sharing in the tips; non-service employees may not share in tips. 

 

To be acceptable under law, a tip pool “must be completely voluntary, initiated by the employees themselves with or without the knowledge of management, and not made part of the terms of hire or conditions of continuing employment.”  A restaurant owner cannot determine whether or not he wants to be a “pooled house” - it is up to the employees only.

 

WYNN DEALERS/LABOR COMMISSIONER UPDATE

PLEASE READ ON.  BE INFORMED.

About six months ago, contributions were collected from many dealers at WYNN to retain the legal services of Litman and Hollins for the purpose of drafting and processing formal complaints against WYNN with the Labor Commissioner’s office. 

Litman and Hollins were retained with the contributions and filed two complaints in September.  The complaints covered the ‘illegal taking’ of tips by WYNN and the fact that dealers are not allowed to count or directly supervise the counting and collection of their own tips anymore.

Both complaints prepared by Litman and Hollins were accepted by the Labor Commissioner’s office and sent to WYNN’s attorneys for response.  WYNN’s attorneys then responded and the Labor Commissioner’s office has informed us that a hearing will be held in the coming weeks to produce a ruling. 

Two things that could happen when the ruling is made:

1.      If the Labor Commissioner rules in favor of the dealers, WYNN has to stop the new tip pooling policy and dealers can file for lost wages.

2.      If the Labor Commissioner rules in favor of WYNN, we would then have the right to be in the District Court that dismissed us in December ’06.

Litman and Hollins are on retainer.  That means that we pay them as we go and that is why we must contribute from time to time.  They will not take any percentage of the return of our tips. 

It is time to contribute again.  All contributions will be directly turned over to Litman and Hollins for deposit in their retainer account.  If you gave last time, please give again and if you can, find just one more dealer to help out that didn’t before.

Please look for us to accept contributions starting Monday, January 14.

Jeff Jaeger

John Neil

Ronda (days)

Danny Robertson

Hunter Dhue