Looking for advice on a legal issue. Here's what happened.
employer withholding tips. I've been dealing with this for about 14 months now and the situation isn't improving.
I have worked at this company for 7 years. My position is exempt and I do not have a written employment agreement beyond the standard offer letter.
What's the typical outcome in situations like this?
I've dealt with this before.
What trips people up most is escalating to a supervisor/manager. I'd recommend following the formal complaint procedure instead.
I went through almost this exact situation in Texas and wanted to share what actually happened, because the outcome was better than I expected.
My employer (a mid-size restaurant group) was taking 15 percent of all credit card tips as a "processing fee" and another chunk for the "house" to redistribute to managers. Both of these practices are illegal under the FLSA as amended by the Consolidated Appropriations Act of 2018, which explicitly prohibits employers, managers, and supervisors from keeping any portion of employee tips.
Here is what I did step by step:
The result: my employer was ordered to pay back wages to all affected employees going back two years (three years because the violation was willful). I personally received about 8,400 dollars in back tips plus an equal amount in liquidated damages under Section 216(b) of the FLSA.
Important note for anyone in this situation: you are protected from retaliation under the FLSA. If your employer fires you or cuts your hours because you filed a complaint, that is a separate violation with additional penalties. Document everything and do not be intimidated.
@TransactionalLaw_Dan_20 -- Washington state actually has even stronger tip protection laws than federal. RCW 49.46.160 makes tip theft a separate state violation. I would strongly recommend filing with both the federal DOL and the Washington Department of Labor and Industries simultaneously.