Davis, CA asked in Employment Law and Business Law for California

Q: I am a server at a restaurant in California. We have a tip pool system in place. Can the owners participate?

The owners act as managers as well as wait staff for the restaurant. They take tables, and contribute to the tip pool, as well as receive a cut of the tips at the end of the night. On some nights they are 2/3rds of the servers on duty. Are they allowed to keep tips even when they are the majority of waitstaff for the night?

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1 Lawyer Answer

A: Yes, owners and managers can participate in tips as long as they are actively part of the chain of service.

Neil Pedersen and Maya L. Serkova agree with this answer

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