Q: I work for a restaurant and the owners daughter who is a co owner is receiving tips. Is that legal?
A: She is legally allowed to earn tips if she is in the chain of service, i.e., a waitress, hostess, busser, etc.
A:
In California, it is generally not legal for owners or managers to take tips from employees. Tips are considered the property of the employees who earn them. If the owner or their daughter, even as a co-owner, is receiving tips, that could violate California labor laws.
The law aims to ensure that tips go directly to the employees, such as servers, bussers, or other staff who directly interact with customers. Owners, managers, and supervisors are typically excluded from participating in tip pools.
If you're concerned, it may be helpful to discuss the situation with your employer or seek advice on how to address the issue. You deserve clarity on how tips should be handled in compliance with the law.
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