What Do I Do if My Boss Is Taking My Tips?
For many workers, especially those in the service industry, tips aren’t just pocket change; they are often lifelines. With base wages in this industry being so low, tips are an additional means helping employees cover their living expenses, support their families and achieve their financial goals. However, some employers can be rogue, taking hard-earned tips from deserving employees. If you are a tipped employee in Ohio and you suspect your boss is taking your tips, it is not only frustrating but also illegal. Let’s explore your rights and the steps you can take to address tip theft.
Are Employers Allowed To Take Tips in Ohio?
Generally, no. Under federal law (the Fair Labor Standards Act, or FLSA) and Ohio state law, tips belong to the employee who earned them. However, there are a few exceptions, including:
- Tip Pools: Employers can require employees to participate in a valid tip pool. This means tips are shared among certain employees (like servers, bussers, or bartenders). For this to be legally effected, employees must be notified of the tip pool in advance and cannot be required to pay more than is reasonable or customary.
- Tip Credit: In Ohio, employers can take a 50% tip credit. In 2025, an employer may pay an employee as little as $5.35 an hour, less than the standard minimum wage, as long as their combined tips and base pay are enough to meet the state’s minimum hourly wage.
What Does Tip Theft Look Like?
If your employer has engaged in any of the below practices, you may be a victim of tip theft:
- Unlawful Tip Deductions: This happens when an employer improperly deducts tips from employees’ earnings to cover costs like customer walkouts, cash register shortages, or break periods.
- Tip Skimming: Some employers unlawfully take a portion of employees’ tips before distributing them, often disguising it as “administrative fees” or to cover business expenses.
- Misusing Service Charges: Employers might add mandatory service charges or gratuities to customer bills but fail to pass these amounts to employees. Instead, they keep the funds as business revenue or use them for operational expenses, often without the staff’s consent.
If you notice any of these red flags, you may be a victim of tip theft.
Steps To Take if Your Boss Is Taking Your Tips
If you believe your boss is stealing your tips or withholding them unlawfully, here’s what you can do:
- Document Everything
Keep a detailed record of your tips, including cash or tips earned through tip pooling. Write down dates, shifts, and any discrepancies you notice. Also, keep a record of how much you earn as your regular pay and what your boss has been taking from your tips.
- File a Complaint
You can file a complaint with the U.S. Department of Labor. They can investigate your claim and potentially recover the lost wages for you.
- Consult a Lawyer
You may also consider filing a lawsuit against your employer for withheld tips and other compensation. A wage-hour lawyer can help you determine if your rights are being violated and guide you through the legal process.
Contact a Skilled Columbus Wage & Hour Attorney Today
If you think your boss is taking your hard-earned tips, contact our contact our office . today to learn how to take action.
At Brian G. Miller Co., LLC, our Columbus wage & hour attorneys represent individuals, and groups of individuals, in claims against their employers for unpaid minimum wages and unpaid overtime wages.
Source:
dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa#:~:text=that%20all%20tips%20received%20by,of%20these%20tip%20credit%20provisions
