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Your employer also cannot count your tips toward its minimum wage obligations. In most other states, employers can pay employees less than the minimum wage, as long as the employees earn enough in tips to make up the difference (called a “tip credit”). However, California does not allow employers to take tip credits. Employers must pay employees at least the California minimum wage for each hour worked, plus any tips they may receive. (You can find the current minimum wage in our article on California wage and hour laws.)

Tip pooling
However, California law does allow tip pooling. An employer can require a group of employees to pool their tips, which are then distributed among the employees in the group. However, California employers philippine phone number lookup must follow certain guidelines to create a valid tip pool.

First, only certain employees can be included in the tip pool. Employees can be included in the tip pool only if they are in the “chain of service” that results in a tip from a particular customer. Generally, servers, bartenders, hosts, and bussers are considered to be in the chain of service, while cooks, dishwashers, and cashiers are not. The only exception to the “chain of service” rule is that managers and supervisors cannot participate in the tip pool, even if they provide direct table service.



Second, tips must be distributed fairly and reasonably. There must be a fair system for deciding how much in tips each employee is paid, usually in proportion to the amount of service the employee provided to the customer. Generally, the majority of the tip should go to the server, with a smaller portion going to the busser, and an even smaller portion going to the waiter or host. The California Department of Labor Standards Enforcement, the agency that enforces wage and hour laws,