August 19, 2008 - California tip-pooling laws are violated when the tips intended for employees directly working with customers are collected and redistributed amongst some who are not entitled to receive gratuity compensation, such as managers and owners. The intent is to prevent management from profiting from tips that are meant for deserving individuals such as servers at restaurants or coffee shops. When done legally, tip pooling creates an equal distribution of the gratuity for those who are deserving - not management. Many employees in various industries rely mainly on tips from their customers for the bulk of their personal and family income. Management cannot save on wages by enticing individuals to work for tips and yet, collect a portion of those very tips. Consequently, those that are shown appreciation by customer gratuity must be protected from this predatory practice. Illegal tip pooling cheats some of the most vulnerable, yet deserving members of our workforce out of money they need in order to support themselves and their families.

Khorrami Pollard & Abir, LLP believes that it is important for plaintiff firms to pursue cases against employers who violate their workers' rights. With such a large number of people who rely on gratuity compensated employment, there are undoubtedly many unrepresented employees affected by illegal tip pooling practices. Please call Khorrami Pollard & Abir, LLP for any assistance you may need in the pursuit of clients and the prosecution of these critical cases.