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ARTICLE · 17 AUGUST 2016

On The Sideboard: Tip Deductions, Side Work, And Meal Credits

Fisher Phillips LLP
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What kinds of employment-related issues are other restaurants facing? Here's a quick look this summer's court activity.

United StatesEmployment and HR
Wendy McGuire Coats
Wendy McGuire Coats
Rochelle Nelson
Rochelle Nelson
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What kinds of employment-related issues are other restaurants facing? Here's a quick look this summer's court activity.

No Deductions in Tips for Cash Deliveries. A restaurant chain came under fire for violating federal wage and hour laws by deducting cash handling fees from its employee's tips. The restaurant withheld a percentage of the credit card tips customers gave servers in order to cover the restaurant's expenses from receiving armored-car cash deliveries. The restaurant used the armored-car delivery service so that its servers could immediately take their tips in cash at the end of a shift, instead of receiving the tips in the employees' biweekly paychecks. This practice was held unlawful because the using a cash delivery services was a business decision that could not be lawfully "charged back" to the employees and taken out of their credit card tips. Steele v. Leasing Enters., 5th Cir., 15-20139, 6/14/16.

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