UNDERSTANDING MINNESOTA’S TIP LAWS: CAN EMPLOYERS REQUIRE TIP SHARING?
In Minnesota, gratuities are considered the property of the employee. Minnesota employers can be held liable if their tip sharing policies violate state or federal wage and hour laws. Our experienced employment attorneys have helped many employees recover lost tips and wages owed to them.
- Can my employer require me to share tips?
- Do my tips count toward minimum wage?
- Is it legal for my employer to require that employees turn over our tips for redistribution?
- I don’t want to pool my tips, but I don’t want to lose my job—what can I do?
- Contact Our Minnesota Employment Lawyers
Can my employer require me to share tips?
Service employees, including wait staff, bartenders and other staff are often at the whims of their employers when it comes to tipping policies. Nationwide, many service positions involve sharing or pooling tips with other members of the staff. However, in Minnesota, no employer may require employees to share their gratuities or contribute tips to a fund or pool. Tips are considered the property of the employee directly serving the customer. (See Minnesota Department of Labor and Industry Fact Sheet on Tip Credit, Tip Sharing, and Tip Pooling.)
Do my tips count toward minimum wage?
No, tip credits are prohibited in Minnesota. Minnesota employers may not withhold tips and may not apply an employee’s tips toward the payment of minimum wage. Unlike other states that allow employers to reduce minimum wage so long as the employee earns enough in tips to make up the difference, Minnesota does not allow employers to count tips toward the employers’ minimum wage obligations.
Is it legal for my employer to require that employees turn over our tips for redistribution?
Under Minnesota law, individuals who perform the direct service should benefit directly from the gratuities paid. Minnesota courts have stated that tips belong to the employees and service workers cannot be forced to share their earnings. If employees agree to share tips without employer participation or coercion, an employer may safeguard shared gratuities to be redistributed, but only for those employees who agree to share. When these amounts are turned over, the employer can report the amounts received as gratuities for tax purposes.
I don’t want to pool my tips, but I don’t want to lose my job—what can I do?
Minnesota courts have stated that pooling or sharing gratuities, “may not be a condition of employment.” Workers who feel coerced or pressured to participate in tip sharing can take legal action to protect their rights and earnings. Any employee who refuses to share tips and is harassed or coerced into participation should consult with an experienced wage and hour law attorney. Such policies could result in liability for employers and damages for employees.
CONTACT OUR MINNESOTA EMPLOYMENT LAWYERS
If your employer forced you to pool or share tips with other employees, we want to hear from you. The employment lawyers at Wanta Thome PLC are dedicated to protecting the wage and hour rights of Minnesota employees and provide a free initial consultation. Contact us to discuss your rights.
CONTACT US
Contact us for a no-obligation confidential consultation with our employment law team.
Erin Moravec18 May 2023Just had a question, it was answered with genuine care and understanding and was super helpful in selling my mind. Would highly recommend and had I had something that could be pursued, I absolutely would hire Wanta Thome PLC!
Bryan Blaha3 May 2023After speaking with a few employment attorneys about my case (some of which who never got back to me), I can say that without question, Shawn Wanta and his team are by far the best attorneys that can represent you. From the intake process, to actually speaking with an attorney, everything incredibly smooth, fast, and kindly professional. Every staff member I spoke with was incredibly friendly, thorough, quick to respond, and took the time to really understand my situation. At no point did I feel rushed or treated like a burden (like one attorney did) - even when I called back with additional questions. There is no doubt that If I ever have an employment situation happen again, the Wanta firm ARE my attorneys! Some of my questions were time sensitive, and they always got back to me that same day. The gal who answered my call always followed through with any little question I had, and just all around the firm is top notch. I would recommend this team to anyone I know, and I’m forever grateful for the time they took to help me and my situation- 10/10!
Trisha Kaiser3 May 2023I was referred to Attorney Scott Moriarity with Wanta Thome and I couldn't be more pleased with our representation. I first spoke with him back in December regarding our situation and he gave some great advice. A few months later, I knew we needed representation and had no doubt that Scott was person we needed in our corner. This was one of the most difficult experiences I have dealt with personally. However, as soon as Scott stepped in, the other attorney backed off and we settled quickly! Scott really looked out for our best interest. He's a great comminicator. I always felt in the loop during this process. Scott is definitely someone you want in your corner. I really appreciate everything he did for us. I highly recommend Scott Moriarity and his team!
Samantha Isaacs26 April 2023I had the pleasure of working with Joni and Katherine as my lawyer and I couldn't be more satisfied with the services provided. Joni was extremely knowledgeable, responsive, and professional throughout the entire process. They kept me informed every step of the way and ensured that my rights were protected. I would highly recommend this law firm to anyone in need of employment law representation. Thank you for your exceptional work!
Nali Malimage14 April 2023(Typed this on my way back in the flight so had a few typos and reposting :) ) Shawn Wanta and Katy are excellent attorneys. Being a female, Katy had been one of my favorite lawyers. She is persistent, technology savvy, quick to learn, quick witted and fights for her clients. Shawn Wanta is a great role model to many attorneys out there. Having seen a wide variety of lawyers since I was a child, mark my word, Katy (Katherine Rollins) is going to be one of the best attorneys in the country someday!
Julia Feygin5 February 2023Chris Jozwiak is a highly esteemed expert, thought leader, and trailblazer in his field. In addition to being a brilliant and immensely skilled attorney, Chris is also one of the most sincere and empathic professionals I have ever engaged with. In all our interactions, Chris has continuously impressed me with his thorough knowledge, strategic vision, tenacity, and uncompromising integrity which he authentically couples with genuine kindness, compassion, and strong sense of purpose. I wholeheartedly recommend Chris and would personally trust him without reservation with any matter.
