Restaurant Owners taking a portion of the Tips

[7uongo]

So my gf's friend works as a waitress at this mom and pop restaurant and we just found out that the owners have been pocketing 50% of the tips and leaving the rest for the staff.

This isnt right, and I'm curious if anyone out there knows if this even legal at all and what the repercussions are for the owners for doing this.

Also, knowing that a restaurant does this and if this was somehow legal and you were a regular/occasional customer to that restaurant, would you still go to that restaurant and tip as you would normally?

note: sorry guys, I cant release the name of the restaurant because we promised her friend we wouldnt say anything

[PsYcNeT]

My father was a restauranteur for 15+ years, and he would be apalled at an owner doing this. Tips are for service staff, not for management.

I would tell her to find a better restaurant to work at, and you should totally tell us the name, they should be publicly shamed into paying their employees everything they deserve.

[BlackArcher101]

Pretty sure there is nothing in the labor laws that say it isn't illegal. They can hold tips entirely if a table walks out without paying.

[ken0042]

Originally Posted by 7uongo

the owners have been taking 50% of the tips before dispursing it to the staff.

What exactly does this mean- that they take 50% of the tips and re-distrubute them? Or take the money for themselves?

Because when I worked in restaurants and bars it was fairly common for tips to be re-distributed. Sometimes it was a matter of the servers "tipping out" the busboys, kitchen staff, etc. Other times there was a pre-determined amount that would be taken to be distributed out.

Sometimes it can be a good thing. One restaurant I worked at we were supposed to give our busboy (each server had their own) 10%. Depending on who I worked with I would sometimes go as high as 50%; because that person would really work to make sure our customers were looked after, and I made a lot better tips because of it.

[valo403]

It's illegal and it's common.

[7uongo]

Originally Posted by ken0042

What exactly does this mean- that they take 50% of the tips and re-distrubute them? Or take the money for themselves?

Because when I worked in restaurants and bars it was fairly common for tips to be re-distributed. Sometimes it was a matter of the servers "tipping out" the busboys, kitchen staff, etc. Other times there was a pre-determined amount that would be taken to be distributed out.

Sometimes it can be a good thing. One restaurant I worked at we were supposed to give our busboy (each server had their own) 10%. Depending on who I worked with I would sometimes go as high as 50%; because that person would really work to make sure our customers were looked after, and I made a lot better tips because of it.

Psycnet knows what I meant but I should probably clarify my OP.

The owners are pocketing half of the tips for themselves and leaving the other half for the staff including the kitchen

Psycnet, her friend cant quit as they've sponsored her with a work visa. The work visa only allows you to stay in Canada while exclusively working for that employer

[Bertuzzied]

Originally Posted by 7uongo

Psycnet knows what I meant but I should probably clarify my OP.

The owners are pocketing half of the tips for themselves and leaving the other half for the staff including the kitchen

Psycnet, her friend cant quit as they've sponsored her with a work visa. The work visa only allows you to stay in Canada while exclusively working for that employer

This is what happens in every chinese restaurant. Is that where she works?

[HOOT]

Originally Posted by Bertuzzied

This is what happens in every chinese restaurant. Is that where she works?

First thing that popped in my head! Too funny!

I'd say she is SOL because saying something could be firing, firing means going home for her.

Just tell her it could be worse...she could have served the Oilers.

[DrPepper]

Thats the way it goes. When I worked at the Tower/Flames Central a year or two ago, us Cooks would get around 300+ at the most on a busy month while the Exec Chef and owners would double that. I remember our 2008 Stampede where our General Manager walked off with 21,000 in tips and quit after Stampede was over. The D-bag scammed us of our tips that year, so most of the staff recieved $300-500 because of the MF.

[Resolute 14]

Originally Posted by 7uongo

Psycnet, her friend cant quit as they've sponsored her with a work visa. The work visa only allows you to stay in Canada while exclusively working for that employer

In short, the owners are exploiting her situation and screwing her out of money. If she complains, she gets fired and gets sent out of the country. If she quits, she gets sent out of the country.

It may not be a bad idea to talk to the labour relations board or BBB on her behalf to find out her options. I would presume that she might be able to keep her work visa if she finds another job/sponsor before leaving this place.

[Hack&Lube]

This is another reason why I don't like the tip system. I don't like it in our culture. You don't tip in Europe. There is no haggling or scamming or confusion about gratuities and fluctuating tip amounts due to size of party, etc.

[troutman]

Originally Posted by Hack&Lube

You don't tip in Europe. There is no haggling or scamming or confusion about gratuities and fluctuating tip amounts due to size of party, etc.

You also get terrible service in Europe where the tips are included.

[ken0042]

Originally Posted by 7uongo

Psycnet knows what I meant but I should probably clarify my OP.

The owners are pocketing half of the tips for themselves and leaving the other half for the staff including the kitchen

Psycnet, her friend cant quit as they've sponsored her with a work visa. The work visa only allows you to stay in Canada while exclusively working for that employer

That really sucks then, but I seem to recall there is nothing illegal about it. It has been years (mid 90's) since I looked into it (a server was complaining about having to tip out the kitchen staff), but any money that a customer leaves at a business for services rendered- it is up to the business owner to determine who gets that extra.

99% of the time the server gets the tips, but that is a general practice and not law.

I feel for that person; having a 1st generation Canadian fiancee I have extended family who gets exploited a bit by various employers. But it would be worse if she gets sent home to make $5 per day because she made a stink about it.

And if the employer is low enough to keep 50% for themselves, they also may not be above being nice while the complaint is in place, then doing something to get her fired.

[Coys1882]

Call Canada Revenue and let them know that they are pocketing 50% and see if they've been claiming it...

[Brick]

Originally Posted by BlackArcher101

Pretty sure there is nothing in the labor laws that say it isn't illegal. They can hold tips entirely if a table walks out without paying.

They have labor laws in Alberta now?

[HOOT]

Originally Posted by Coys1882

Call Canada Revenue and let them know that they are pocketing 50% and see if they've been claiming it...

This is the meanest trick in the book but a good one indeed! My buddy did this to a contractor he knew was making cash on the side that screwed him.

The best part of it is even if they don't find anything an audit can be very expensive and timely process especially when running your own business.

[flamesfever]

All the reason to pay the tip to the waitress or waiter directly in cash.

[Papi34]

Tell her to steal the empties

[Hack&Lube]

Originally Posted by troutman

You also get terrible service in Europe where the tips are included.

I get terrible insincere service and sycophancy here where tips are not included. All the service I experienced in Europe was fine by my standards.

Do you notice how in a Chinese restaurant there is hardly any service and the waiters don't really look at you after they have brought you food? I'm fine with that. I want to eat my meal, not be bothered. The entire service thing with restaurant etiquette is a cultural thing with what people expect and don't expect.

In both western and chinese fine-dining culture, if want extra service or appreciate it, I think you slip them a few dollars at the table personally when they come around. Tiping on the bill that someone else might collect and then keep or split later on doesn't ensure that the server you got gets their reward or just deserts.

[Dan02]

Originally Posted by flamesfever

All the reason to pay the tip to the waitress or waiter directly in cash.

tipout is based on the amount sold not the actual amount tipped.