Q: Is a 30% tip-out to support staff legal in NC restaurants?
I'm a server who recently joined a new restaurant in North Carolina and had to sign a handbook agreeing to a tip-out policy of up to 30% to support staff who run my food, clean tables, and make drinks. Although I'm earning well due to high tips, I'm wondering if this 30% tip-out is excessive and whether it's legal. The policy was clearly stated during orientation and onboarding. I want to know if it's possible to reduce the tip pool for more personal earnings.
A: Your employer should take no more than 15% of your tips under N.C.G.S. § 95‑25.3 (f). It's also questionable if tips can be shared with employees who run food and clean tables. You and your co-workers should consult with an attorney as soon as possible.
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