Many workers in North Carolina depend on tips to make a decent living.
But is it legal for your boss to take them?
A North Carolina resident recently posted on Reddit about a situation in which his girlfriend’s boss withheld her tips as a punishment for being late.
“My girlfriend works at a mini golf place and she does a great job at earning tips,” the user wrote. “She was late twice this month, and her boss told her that he has to take her tips. She does extra for this job and goes on her only day off to local events to promote this business. I do not think that this is even remotely fair to withhold tips from any employee, especially when you make only $13 dollars an hour.”
North Carolina has laws on whether your boss can take your tips, the minimum wage you can earn with tips and tip pooling. Here’s what to know.
Is it legal for your boss to take your tips in NC?
The Fair Labor Standards Act prohibits managers and supervisors from taking an employee’s tips .
Managers and supervisors can only keep tips they receive directly from a customer for a service they provide, according to the FLSA.
“For example, a restaurant manager who serves their own tables may keep their own tips from customers they served but would not be able to receive other employees’ tips by participating in a tip pool,” the FLSA says.
Can NC employers pay less than minimum wage?
North Carolina law requires employers to pay tipped employees at least $2.13 per hour .
Employers are permitted to pay less than minimum wage ($7.25) as long as their employees receive enough in tips to make up the difference , according to the NCDOL.
Employers can do this by claiming a credit for the amount of tips earned by their employees toward their payment of the minimum wage.
“For an employer to be able to count tips as wages and take a tip credit towards the minimum wage, the law requires that tipped employees be notified in advance and be permitted to retain all tips ,” the NCDOL says.
If an employee earns less than $7.25 per hour, including the tip credit, then employers must pay more than the $2.13 hourly cash wage to make up the difference.
Is tip pooling legal in NC?
Tip pooling, an arrangement in which a group of employees receives a percentage of all tips earned, is legal in North Carolina as long as tipped employees keep 85% of their own tips , according to the N.C. Department of Labor . The other 15% typically goes to support staff, such as a busser or host.
That means employers “must maintain accurate and complete records of the tips received and the amount of tips earned under the tip pooling arrangement,” the NCDOL says.
How to file a wage complaint in NC
Complaints involving minimum wage or tips should be filed with the U.S. Department of Labor .
To file a complaint, you must provide the following information:
Your name
Your address and phone number
The name of the company where you work or worked
Location of the company
Phone number of the company
Manager or owners name
Type of work you did
How and when you were paid
“Any additional information that you can provide such as copies of pay stubs, personal records of hours worked , or other information on your employers pay practices are helpful,” the department says.
You can file a complaint by filling out a formonline at dol.gov , or by calling 1-866-487-9243.
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