Q: What is the CA regulation for a shop owner taking 20% of a nail techs tip if included in the credit card bill?
The shop owner always takes out 20% of tips included on the credit card. I gave a 50% tip to my technician for a Christmas bonus and the owner kept $10. of it.
A:
You have no claim. The claim, if any, belongs to the employee to whom the tip is given.
With respect to the employee's potential claim, Labor Code section 351 provides, “No Employer or agent shall collect, take or receive any gratuity or a part thereof that is paid, given to, or left for an employee by a patron…. Every gratuity is hereby declared to be the sole property of the employee or employees to whom it was paid, given, or left for.”
The business can, however, practice "tip pooling." In Leighton v. Old Heidelberg, Ltd., tip pooling among employees was not prohibited by section 351 because the employer did not “collect, take, or receive” any part of a gratuity left by a customer, and did not credit tips or deduct tip income from employee wages. Employers must exclude any employees who direct the work of other employees from tip pools.
Note: There may be contrary local ordinances that effectively prohibit tip pooling.
If the employee believes that the employer has wrongly taken a portion of the tip for the employer or supervisors, the employee can file a complaint with the Labor Board, or file a lawsuit for conversion.
https://www.dir.ca.gov/dlse/HowToReportViolationtoBOFE.htm
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