Is my employer allowed to keep a part of my tips?

On Behalf of | Apr 19, 2021 | Uncategorized |

Many who work in the service industry in Kentucky often rely on tips to supplement their wages and make ends meet. However, depending on the circumstances, employers who try to keep a worker’s tips may be violating wage and hour laws.

Can my employer keep a portion of my tips?

Under Kentucky law, employers cannot require workers to remit part of the tips they receive, except for what is required to be withheld by state or federal law. For the purposes of this laws, tips include voluntary monetary contributions received by a worker from a guest, patron or customer for the services performed. So, except for state and federal withholdings, employers cannot require workers to pay them a portion of their tips.

Is tip pooling legal?

Under Kentucky law, tip pooling is legal. Tip pooling means that employees gather or “pool” part or all of their tips, which are then distributed among all eligible employees. However, involvement in a tip pool must be voluntary, and the agreement to pool tips must be made by the employees. Employers can let employees know a tip pool exists, but they cannot set up the tip pool or force an employee to contribute to one.

Learn more about wage and hour violations in Kentucky

Whether you are a server, a delivery person, a hair stylist or one of the many other workers in Kentucky who receives tips, it is important to understand your rights with regards to keeping the tips you worked hard to earn. This post is for educational purposes only and does not contain legal advice. Those in Kentucky who have further questions about their wage and hour rights may find our firm’s website to be a useful resource.