Charleston Business Daily

Can my employer take my catering tips if unsatisfactory service is rendered?

Catering guest complain when items are missing from their order. But, they don't know this until the tip has already been allocated. Management doesn't feel that poor service should receive tips.

Public Comments

1. Not sure about any legal issues on this, but a tip is for very good service, not just delivering the food, then leaving. It should be part of your duties to verify each order before it is delivered and also at the delivery location....I would think that you would go over the order with the customer to be sure that everything they ordered is there.....if these procedures are not being done, suggest to Mgt that it would be very beneficial to the customer and your employer to check all orders before they leave the restaurant
2. 100% illegal and actionable. The employer can be liable for three times whatever they take out of your tips. Contact your local state employment office about your rights. We just had a major wage audit for most of our restaurants and one Asian place got busted for over $50,000 in underpaying waitstaff. Another got busted for not paying employees to wash uniforms owned by the company and that was like $8000. The only out I see for them is if you are paid a fixed percentage on catering and the meal was discounted. But if they discount 25%, they can't discount your tip 50% or 100%.
3. Poor service does not deserve tips. However, since the tip was given to you, it is yours, not your employers. If your employer does not like your job performance, he can put you on notice to clean up your act, but not take your tips. You should contact your government employment department to see if your employer should pay you back. Of course, he can then terminate your employment if you are working 'at will' which is usually the case in the USA.