Tuesday, July 19, 2011

Is it legal for a company to deduct money from tip pool to pay their share of company payroll taxes?

I work as a busser at a restaurant that has a tip pool. I get payed $7.25 plus tips. Every server tips out 1.5% of food and alcohol sales that goes into a busser tip pool. This money then gets split up between the bussers depending on how many hours each one worked. So lets say theres 10 servers and two bussers on a given night, and each server sells exactly $1,000 dollars worth of food and alcohol. Each server would tip $15 dollars into the tip pool, making the total amount of the tip pool $150 dollars. Technically each busser should receive $75 in tips for that night. But for every hour that each busser works, the restaurant deducts $1.50 out of each busser's tips. So if each busser worked 6 hours that night, the restaurant would deduct $9 from each busser's tips so that each busser would receive $66 instead of $75. It doesn't seem like much, but that amount adds up over time. The restaurant says this amount is taken out to cover their 7.65% of payroll taxes that they're supposed to pay. Well my question is, is this legal. Are they allowed to take this money out of our tips to pay their payroll taxes?

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