Common Employment Law Violations in the Restaurant Industry
Regardless of industry or occupation, it’s crucial for Tennessee workers to know and assert their employee rights in the workplace. There are various state and federal employment laws in place to protect employees from discrimination and unfair treatment in the U.S. workforce.
Despite these laws, many U.S. employers will take advantage of staff members who are unaware of their rights, making it all the more important for employees to be aware of common employment law violations.
Because the majority of employees in the restaurant and food service industry work for tips, this can open the door to numerous violations by restaurant owners and those in upper management roles. Such illicit actions are often difficult to detect, often allowing them to occur without employee knowledge. What steps can servers and other tipped employees take if they suspect an employer of withholding wages or otherwise taking advantage of staff members?
Keep reading to learn some of the most common violations against tipped employees in Tennessee.
5 Ways That Restaurants Take Advantage of Tipped Employees
From bartending to waiting tables to delivery and catering, many Tennessee employees work for tips. In the food service industry in particular, wage and hour laws for tipped workers can be complex, often leading to additional complications for employees and employers alike.
Because Tennessee lacks state-specific laws for tipped employees, employers are legally obligated to abide by federal employment laws.
Below are 5 of the most common violations that employers commit at the expense of waitstaff in the restaurant industry:
#1. Illegal tip pooling.
Tip pooling is a common practice in the food service industry to ensure that all participating employees are compensated for their share of service.
For example, servers may “tip out” (distribute a certain percentage of their total tips) to fellow staff members who also contributed to the customer experience, such as:
- Bussers, who help clear tables between guests;
- Expos, who help ensure food is prepared correctly and on time; and
- Bartenders, who make the guests’ drinks.
However, when a tip pool is partially distributed to restaurant owners, managers, and certain back-of-house staff members, this is considered an illegal tip pool.
An experienced employment law attorney can help determine which employees are ineligible to participate in the tip pool, in addition to whether or not the business owner is failing to properly distribute tips to staff.
#2. Illegally skimming from an employee’s tips.
Failing to remit all earned tips to a staff member is illegal. If a server’s boss, manager, or other higher-ranking member withholds a portion of the waitperson’s total tips, the employer may be illegally skimming from that staff member’s total earnings.
If you suspect illegal skimming at your place of work, it's wise to record and track earned tips yourself to verify consistency. A skilled employment lawyer can offer needed insight regarding potential tip theft.
#3. Forcing an employee to pick up a walked tab or payment shortage.
The majority of servers have experienced a walked tab at some point. A “walked tab” occurs when a customer leaves the business without paying for food or services. In other instances, customers may leave a payment that comes up short of the total bill (such as leaving a twenty-dollar bill for a meal that cost $30).
In these cases, it’s illegal for the employer to require the server to cover the shortage. If you were stiffed on a tab, your manager cannot legally require you to pay the full or remaining balance of the bill.
#4. Deducting more than the actual cost of credit card processing fees.
While it’s legally acceptable for employers in the restaurant industry to charge a processing fee for credit card tips, they cannot charge any more than the actual fee.
For example, if a restaurant routinely charges a 5% processing fee to finalize servers’ tips, but the actual processing fee is only 3%, this is illegal.
#5. Charging employees for mandatory uniforms.
An employer cannot charge waitstaff for mandatory uniforms, nor can they force a staff member to purchase a mandatory uniform.
Keep in mind that this strictly applies to mandatory uniforms. If the uniform isn’t required employee attire, an employer can legally charge for it.
Passionately Protecting Employees in Memphis & Beyond
Our team at Donati Law, PLLC has extensive experience representing hardworking employees throughout the Mid-South. Our compassionate attorneys exclusively represent employees, not employers, and are committed to seeking justice for each and every client we serve.
As one of the top employment law firms in the region, we know that our nation's justice system tends to favor those with wealth and status—often at the detriment of the hardworking employees who comprise the backbone of our American economy. That's why our firm is committed to defending the rights of Tennessee workers.
With over 150 years of collective legal experience, our employment law attorneys are well-equipped to advocate on your behalf and fight for the justice you deserve. We have a proven track record of successfully representing workers in a wide range of employment law matters, from family and medical leave to wrongful termination to overtime violations.
If you’ve been unfairly treated by an employer, turn to a firm with an in-depth knowledge of employment law. Call (901) 209-5500 or contact us onlineto discuss your case with a knowledgable employment law attorney.
