Q: Can a business owner keep staff tips

A: No. "Tips" are employees property.

Supervisors can only share in the tips if they are part of the chain of service.

According to the Labor Commissioner,

I work in a large restaurant as a waiter. My employer told me that I am required to share my tips with the busboy and the bartender. Am I obligated to do this?

A.

Yes. Labor Code Section 351 provides that "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 section has been interpreted to allow for involuntary tip pooling so long as the tip pooling policy is not 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 or are in the chain of service to a patron. In addition, the policy must be fair and reasonable. Therefore, your employer can require that you share your tips with other staff that provide service in the restaurant so long as the employees that share in the tip pooling policy are employees to whom the tip was paid, given, or left for. In this regard, the courts have validated policies that distributed tips among employees who provide "direct table service" or who are in the "chain of service" provided that employee in the chain of service bears a relationship to the customers' overall experience. (updated March 2013).

https://www.dir.ca.gov/dlse/faq_tipsandgratuities.htm#:~:text=Labor%20Code%20Section%20351%20provides%20that%20%22every%20gratuity%20is%20hereby,given%2C%20or%20left%20for%22.

A: Under California law, Labor Code Section 351 prohibits employers and their agents from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee by a patron. This means that employers cannot keep tips intended for their employees. Furthermore, all tips received by an employee are to remain the sole property of the employee. If an employer is found in violation of this code, they may be subject to both civil and criminal penalties. If you believe your rights are being violated, you can file a wage claim with the California Department of Industrial Relations' Division of Labor Standards Enforcement. It's essential to keep records and documentation related to any tips received and any amounts taken by the employer. Consider discussing the issue with your employer or seeking legal counsel if the situation does not resolve.