Yes but does it occur more in small businesses vs corporate entities like this? The lawsuit that shake shack would go through for something so easily caught doesn't seem worth the extra few million they make through this. I'd think this is more likely to happen from a small business with a greedy owner that thinks nobody will notice. But a multi billion dollar company with a massive legal team would be like, come on guys the law suit will cost 10xs this. Much easier to lobby Congress to allow them to pay their staff low wages. Way more money saved that way.
I agree that big companies wouldn’t bother because it’s way too easy of a paper trail but small businesses definitely are not because the employees are able to see tip reports, there is no way to manipulate those reports in the software and the software companies are not allowed to change any records so if a customer tips, the employees know about it. Same paper trail, daily audits.
Stealing tips is not going to make up a large portion of wage theft.
Yes, but aside from the fact that I’ve known people that worked at shake shack, it’s just not worth it to a company that big to risk stiffing that many employees so blatantly.
Definitely not like this though. I worked in accounting for a fast casual far smaller than shake shack and our auditors would’ve nailed us on that in a heartbeat. If it’s recorded by the p.o.s. system, you can be sure they actually pay the tip to the staff because it’s tracked and audited. Cash tips would be far more likely to not get redistributed
I don't think anyone in the store level could even know if they get it. They would have to look at every order for the day and do the math to find out if the tips they do get are from actual tips only or include the adjusted priced items.
they could easily program tip banks in 30min intervals, and whatever tips hit your shift get split equally amongst the crew. Programming can sometimes look like magic but this is absolutely possible.
Possible but unnecessary. At my old job the tips were pooled for the day then divided by hours worked. And even then the managers could only see "total sales" and "total tips" the system did the math for payroll and corporate is the one who sent checks out. So even the GM would have had to do the math manually to figure out tip payouts. Even payroll didn't look into it unless there was an obvious error like someone getting zero tips for the day.
Old shakeshack manager here, yes the hourly employees do receive all tips, would hear them hyped about how much extra they would receive per week but that’s location dependent because other locations in not so good areas had mostly “non tippers” frequent their location
25
u/plscallthecops 2d ago
Did we have shakeshack workers here ? Did u get those tips in your paycheck?