The federal minimum wage is currently $7.25/hr.   Despite this, federal law allows employers to pay servers as little as $2.13 per hour so long as certain conditions are met.  First, the employer must notify its servers that it will take a 'tip credit' against its minimum wage obligations.  Second, the server must regularly receive at least $30 per month in tips.  Finally, the server must be allowed to keep all of his or her tips - except those which are shared with other 'tipped employees.' The tips plus wages combined must add up to at least the $7.25 per hour.  These requirements are strictly construed.

If your employer fails to comply with all of these requirements, they are not permitted to claim a tip credit against their minimum wage obligations.  The result is that they will forfeit the tip credit for each and every hour that you worked in the last 2-3 years. 

There are several common violations. First, many employers simply fail to explain to their servers that they will take a tip credit or that the tips a server makes will be used to satisfy the tip credit.  If they fail to notify the servers, they are not permitted to claim the tip credit. 

Also, many restaurants and bars require the servers (waiters and bartenders) to share tips with kitchen workers (i.e. kitchen chefs, cooks, salad preps, line guys, dishwashers, pastry chefs, etc.), managers, cleaning crews, cashiers, valets, or other employees who do not have direct customer interaction.  When that occurs, the employer has violated the tip pool laws  and is, again, not permitted to claim the tip credit.  

These types of violations are commonly found in bars, restaurants, "strip clubs," hotels, and casinos.  For instance, a dealer who receives tips (or tokes) from a customer should not be required to share those tips with floor supervisors, the 'cage,' or other employees who do not have direct customer interaction.  Similarly, exotic dancers should not be required to share their tips with managers, DJs, the 'house mom,' etc.

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The Houston tip pool violations attorney of the Debes Law Firm represent clients nationwide. Regionally we serve the uptown, downtown and Galleria areas of Houston, Texas, the cities of Austin, Bellaire, Bryan, College Station, Corpus Christi, El Campo, Horton, Galveston, Port Arthur, Sugar Land, Texas City, and West University, as well as residents of Brazoria County, Fort Bend County, and Harris County.