This Obscure Law Prohibits Employers from Taking Workers Tips

This is a video about TIPA

I'm Trang Tran here to talk to you about the Tip Income Protection Act (TIPA for short). This law was passed in March of 2018. It states that an employer may not take an employee's tips. An employer may not take an employee's tip and give it to a manager or a supervisor. The law does not define what a supervisor or a manager is, but the DOL has interpreted it to be, people that fall within the executive exemption.

one special thing about Tipa is that it restricts the employer from using someone's tip to pay managers or to keep the, to, even if the employer's paying the employee. The minimum wage is $7. 25 an hour. Usually, waiters or wait staff or bartenders or tipped employees are paid a sub-minimal, below minimum wage set up, pay us up to 13 an hour.

So it's below 7 25. But Tempa says now that even if they're paying a minimum of 7 25, they're not allowed to take that tip above it and use it for their own use. So they can't take that money and give it to managers and supervisors. They can't take that money for credit card fees that are higher than what they're charged by the credit card company and all the things I covered in the previous videos.

Walkouts shortages, miss orders, breakages uniform, you can't charge the employees for any of those things because TIPA restricts, the business from taking any of the waste staff or tipped employees, tips. Even if that way staff or the tipped employee is being paid. The minimum wage.

It's a higher standard now. The penalty is, over a thousand dollars per incident. The employer (Restaurant or Bar) has to pay back the tip that it took. If there's a difference between, what the employer is paying the tipped employee per hour, and $7.25, it has to pay that difference back. The employer also has to pay liquidated damages and attorney's fees.


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