Wage Theft in the Restaurant and Service Industry

 Service industry workers, including waitstaff, bartenders, and salon workers, are often victims of wage theft. Employers in restaurants, catering companies, and banquet facilities may illegally withhold tips or service charges that rightfully belong to the employees. Here’s how to protect your earnings and understand your rights.

Common Forms of Wage Theft in the Service Industry

 1. Unpaid Service Charges: Some employers charge customers a mandatory service charge or gratuity but fail to distribute the full amount to employees.

2. Stolen Tips: Tips intended for workers, such as waitstaff, bartenders, bellhops, or hairdressers, are sometimes kept by supervisors or owners, reducing workers’ earnings.

3. Illegal Tip Pooling: Tip pooling among non-supervisory workers is allowed, but if a supervisor takes a share, the workers must be paid at least the minimum wage.

Your Legal Protections

 If your employer doesn’t give you the full-service charge or tip, you may be entitled to additional wages. For example, if you’re only paid the federal tipped minimum wage of $2.13 per hour, you could be owed $5.12 more per hour, plus liquidated damages and stolen tips.

Employers who fail to distribute tips properly lose their claim to a “tip credit” and must pay the full minimum wage.

What to Do If You’re the Victim of Wage Theft

 If you believe your employer has withheld your wages or tips, fill out our Industry Inquiry Form to discuss your case with us. We’re here to help ensure you receive the wages you’re owed.

By knowing your rights and acting quickly, you can protect yourself from wage theft and ensure you’re paid fairly for your work.