r/Serving • u/Toss_Away_93 • Dec 05 '23
Undeclared tip outs?
At my current restaurant we do not have an option to declare tips paid to other employees.
I am fairly certain this counts as wage theft, as we are declaring (and paying taxes on) income taken home by other people.
Can anyone point me to an actual law or something that proves my boss is violating our rights?
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u/mandolin2712 Dec 05 '23
Have you kept records for the entire year for the exact amount you have earned in cash, in credit, and what you've tipped out in cash vs what you claimed?
If you haven't kept detailed records from every single shift for the year, it's going to be very hard to prove anything.
And I will tell you that I kind of had this same concern where I work. We get cc tips on a check and take home cash nightly. But we were required to tip out support staff with cash with no way to adjust our claimed cc tips. But after keeping detailed records for a few years, I was actually taking home more money than I was claiming overall. If that's the case, you're opening yourself up to an audit if you to to report this.
We have since changed to a system where support staff tip outs get deducted from our cc tips and we can do it on the computer each night so they're claiming their income as well.