California Tip Theft Calculator

Basic Information

California Tip Law (LC 351): Tips are the sole property of the employee. Employers and managers cannot take any portion of tips. Credit card processing fees cannot be deducted from tips.

Your Hourly Wage ($) For waiting time penalty calculation

Average Tips Per Shift ($) Your typical tips before any deductions

Violation Start Date When tip theft began

Violation End Date Leave blank if ongoing

Shifts Worked Per Week

Type 1: Manager/Supervisor Taking Tips

Manager or supervisor took a share of tips Illegal under LC 351 - managers and supervisors cannot share in tip pools

Percentage Taken by Manager (%) Or enter dollar amount below

OR Fixed Amount Per Shift ($)

Type 2: Illegal Tip Pooling

Forced tip sharing with non-tipped employees Tips shared with kitchen staff, dishwashers, or others who don't customarily receive tips

Percentage of Tips Going to Pool (%)

Percentage of Pool to Ineligible Employees (%) Portion going to back-of-house or management

Type 3: Credit Card Fee Deductions

Employer deducted credit card processing fees from tips Illegal in California - employer must pay full tip amount

Credit Card Fee Percentage Deducted (%) Typical merchant fees are 2-4%

Percentage of Tips Paid by Credit Card (%) Estimate what portion of tips came from cards vs. cash

Type 4: Service Charge Misrepresentation

Tips vs Service Charges: Service charges belong to the employer unless they tell customers it goes to employees. If customers reasonably believe it's a tip, but you don't receive it, this may be a violation.

Service charges were kept by employer but presented as tips E.g., "gratuity" or "service charge" on bill that you didn't receive

Service Charge Percentage (%) Typical auto-gratuity percentage

Average Check Size ($)

Tables/Parties Per Shift with Service Charge

Amount You Actually Received Per Shift ($) What you were paid from service charges

Waiting Time Penalty (If Terminated)

I was terminated or quit and wages were not paid timely Up to 30 days of wages as penalty under LC 203

Termination Type

Last Day Worked

Date Finally Paid (if ever) Leave blank if still unpaid

Interest Calculation

Include Prejudgment Interest? California allows 10% annual interest on unpaid wages

Your Tip Theft Claim Summary

Stolen Tips Breakdown

Manager/Supervisor Tip Theft $0

Illegal Tip Pooling Losses $0

Credit Card Fee Deductions $0

Unpaid Service Charges $0

Calculation Period

Total Shifts Affected 0 shifts

Time Period -

Additional Damages

Subtotal Stolen Tips $0

Prejudgment Interest (10% annual) $0

Waiting Time Penalty $0

Waiting Time Days 0 days

Total Estimated Claim

Plus potential attorney fees and costs if you prevail (LC 1194.2)

Applicable Law Citations

California Tip Law References

Labor Code 351 - Every gratuity is the sole property of the employee. No employer or agent shall collect, take, or receive any gratuity paid to an employee.

Labor Code 353 - Violations of LC 351 are misdemeanors. Employees can recover full amount of tips plus interest.

Labor Code 203 - Waiting time penalty: up to 30 days wages for late final paycheck

Labor Code 218.6 - Prejudgment interest at 10% per annum on unpaid wages

Labor Code 1194 - Employees can recover unpaid wages plus interest and attorney fees

Labor Code 1194.2 - Liquidated damages equal to wages owed plus interest for willful violations

Important Distinctions:

Tips: Voluntary payments from customers that belong entirely to employees
Service Charges: Mandatory charges set by employer - belong to employer unless disclosed otherwise
Valid Tip Pools: Can include servers, bussers, bartenders, hosts who customarily receive tips
Invalid Tip Pools: Cannot include managers, supervisors, owners, or back-of-house staff

Ready to Send a Demand Letter?

Generate a professional demand letter citing California Labor Code 351 and 353.

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