Legal Question in Business Law in Kentucky
I work as a bartender at a Mexican restaurant in KY. I am the only "American" that works there. The servers are all immigrants (legally..idk). I get paid $5.00 and hour and I keep my tips. The servers on the other hand make $2.75 an hour and split their tips. The strange thing is, the manager writes them a check at the end of the week, makes them sign it and return it to him. He tells them they have to pay the guy who brings out the food. If their check isn't enough, they have to pay the difference out of their tips. Is this legal? I feel sorry for the servers, they work all day long and only get one day off per week. Shouldn't they get to keep their check and management have to pay the food server?
2 Answers from Attorneys
It sounds legitimate to me. When I waited tables, I never once got a paycheck. That was because 10% of the sales we rang up had to be calculated in consideration for withholdings for taxes, on the presumption we earned 10% tips on each sale (which is why I'll never stiff even the worst server). We had to tip out the bartender, the food runners, and the hostesses from our tips each shift. Our end of shift sales slip told us exactly how much (even if we had terrible tips that shift).
When you wait tables, you literally live on tips, you don't actually get the $2.13 an hour, it all goes to taxes or tipping out your support staff. There's much criticism of this because, unless you're really keeping track of every penny, or you're a terrible server, you're probably earning more than you're reporting for taxes. (I'm pretty sure I was a terrible server, because I never made very much money!)
s a Franchise Attorney I can say this practice does sound suspect. Having every employment check endorsed over to the manager? They (or someone) should contact your local employment development or labor department. They will investigate what's happening. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
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