Tuesday, June 29, 2010

The Treatment of Tips under the FLSA: What Constitutes a Tip?

A tip is presented by a customer as a gift or gratuity in recognition of service performed.  Bingham v. Airport Limousine Serv., 314 F. Supp. 565, 572 (W.D. Ark. 1970); WH Admin. Op. (Dec. 26, 1973); WH Admin. Op. (Apr. 30, 1975); 29 C.F.R. §§ 531.52, .53.   

Tips must be money or its equivalent.  29 C.F.R. § 531.53.   

Any compulsory charges or service charges (such as banquet fees) are not tips even if distributed to employees.  Mechmet v. Four Seasons Hotels, 639 F. Supp. 330 (N.D. Ill. 1986), aff’d, 825 F.2d 1173 (7th Cir. 1987); WH Admin. Op. (Jan. 15, 1975); WH Admin. Op. (Feb. 18, 1975); 29 C.F.R. §§ 531.52, .55.   

Compulsory and service charges can count towards minimum wage requirements.  29 C.F.R. § 531.55(b); Melton v. Round Table Rest., 20 WH Cases 532, 535 (N.D. Ga. 1971).

Please be sure to visit our website at http://RobertBFitzpatrick.com

1 comment:

Anonymous said...

Nicole Stevenson University of Maryland 2015
SeekingArrangement Profile in 2014/2015

Nicole Stevenson
"Nicole" / "Lydia"
121 Laurel Valley Ct
(410) 515-7922
Abingdon, MD 21009
22, College Park, MD / Washington, DC
"Looking for a Generous Daddy"
I'm a cute girl looking to have lots of fun. Currently a student looking to go to law school. I love going into the city and trying new restarants and seeing performances. I love dancing, theater, and singing too.
Looking for a generous sugar daddy who will take this little girl out and spoil her with money and gifts. We can have a lot of fun together:) Show me the money and I'll show you the sugar. I'm worth it - you won't be disappointed. No wannabees or cheapskates!! I expect a significant financial arrangement.