How can I legally address tip discrepancies in a mom-and-pop shop without HR?

Question

As an employee, my compensation includes a 45% commission and 100% of my tips. However, I've noticed discrepancies where tips are entered incorrectly; for instance, a $23 tip was recorded as $20. This issue happens frequently, and accessing the computer system to document it is difficult because it's restricted when the managers are around. It's a mom-and-pop shop with no HR department, and the manager is related to the owner. Our employment agreement was verbal, with some details listed as part of the job description on Indeed, but nothing is signed. Furthermore, our paystubs do not show a breakdown of how funds are allocated, as the owner handles it privately and uses her own calculations. How should I proceed legally to address and resolve these discrepancies regarding my tips?

Kelly A Rochotte · Answer

More information is needed to properly answer this, but generally, you should begin documenting everything if you haven’t already. Include dates/shifts worked, tips received v entered, communications with the employer / manager about your pay. Ask them directly what the process is, in writing, if possible. Something simple but not accusatory, like, “I’ve noticed inconsistencies with the tips recorded in my pay, like a $23 tip recorded as $20. Could I get a breakdown of how my pay is calculated per pay period for my records?”   
 
If they’re shorting you on purpose, or you get no fix from confronting them head-on, you can speak with an employment attorney who handles wage and hour theft claims. You can also file a complaint with the Ohio Dept of Commerce, who will investigate. Good luck.

James L. Arrasmith · Answer

It’s frustrating to feel like your hard-earned tips aren’t being handled fairly, especially when you’re working in a small business without a formal HR process. Even without a signed contract, verbal agreements and written job postings—like the one on Indeed—can still carry legal weight. In Ohio, employers are required to keep accurate wage records, and if tips are part of your compensation, they have to be reported and paid accurately. 
 
Start by documenting every instance where you notice a tip discrepancy. Keep notes with dates, customer names (if possible), what the tip amount should have been, and what was actually paid out. If you’re unable to access the system while managers are present, jot down what you can after your shift or ask for printed receipts if they’re available. Present your concerns calmly in writing to the owner, asking for clarification and an audit of recent payments. Make sure you keep a copy of your message. 
 
If they ignore or dismiss your concerns, you can file a wage complaint with the Ohio Department of Commerce, Wage and Hour Bureau. You also have the right to request a pay stub that reflects how your pay and tips are calculated. It takes courage to speak up, especially in a tight-knit workplace, but you deserve transparency and fair pay for your work.

Q: How can I legally address tip discrepancies in a mom-and-pop shop without HR?