|
A Few Tips About Tips:
Tips are made up of the sums voluntarily paid by patrons or service charges added to the patron's bill, but do not include administration fees added to this bill. An employer cannot require that an employee pay credit card costs. Whatever form tips take, they cannot become part of the wages. Consequently, the employer must pay the employee at least the minimum wage prescribed without taking into account the tips that he/she receives.
Employee receiving tips:
An employee receiving tips is an employee who usually receives tips and who works:
-
in an establishment that offers lodging to tourists in return for payment, including a campground;
-
in a place where alcoholic beverages are sold for consumption on the premises;
-
for an enterprise that sells, delivers or serves meals to be eaten off the premises; or
-
in a restaurant, except if it is a place where the main activity consists in the providing of food services to customers who order or choose the items at a service counter and who pay before eating.
Payment of the tip:
The tip may be paid directly or indirectly to employees. It is paid directly by the patron to the employee, when it is given from hand to hand.
Tips are paid indirectly when the employer collects tips on behalf of the employee under either of the following circumstances:
-
the patron uses his credit card or debit card;
-
the patron pays the employer service charges added to the bill.
Whether tips are paid directly or indirectly, they belong to the employee who rendered the service. If the employer collects the tips, he must give them in their entirety to the employee who rendered the service.
Distribution of the tip
The employer cannot impose the sharing of tips among employees. Nor can he intervene in any way whatsoever in the establishment of a tip-sharing arrangement.
Only those employees entitled to tips may agree to distribute among themselves the tips that belong to them or to distribute a portion thereof to other employees in the establishment. However, an employee who benefits from a redistribution of tips does not become, by reason of this fact, an employee having to be paid at the minimum wage rate applicable to employees receiving tips.
Tips and IRS
|
|
|
