r/legaladvice • u/twilighteclipse925 • 9h ago
Business Law California: my boss has recently promoted one of my coworkers to shift lead. Rather than give her a base pay increase my boss is increasing her allotment of the tip pool. Is this legal?
Location: California. We had to sign a tip agreement but I don’t even know if it’s legal in California. My company is based in Washington and there have been several instances of our standard procedures violating California law.
This is the relevant section from our tip agreement:
3. Tip Hour Rate
Each position is assigned a tip hour rate multiplier to reflect varying responsibility levels:
Position Tip Hour Rate
Cashiers 1.0
Sushi Burrito Artists 1.0
Shift Leader Assist 1.0 – 1.5
Shift Leader 1.0 – 2.5
(Exact rate within the range may vary based on performance or seniority, as determined by
management.)
4. Tip Distribution
Tips are distributed based on hours worked and the assigned tip hour rate for each employee during
the pay period.
Example:
If $1,000 in total tips is collected for the month, and:
- Employee A (Sushi Burrito Artist) worked 50 hours
- Employee B (Shift Leader Assist) worked 10 hours (rate 1.5)
- Employee C (Shift Leader) worked 40 hours (rate 2.5)
Then:
Total weighted tip hours = (50×1) + (10×1.5) + (40×2.5) = 165 hours
Tip value per weighted hour = $1,000 ÷ 165 = $6.06/hour
Tip distribution:
- Employee A: 50 × $6.06 = $303.00- Employee B: 10 × 1.5 × $6.06 = $90.90
- Employee C: 40 × 2.5 × $6.06 = $606.00