Tipping issues in Texas can be complicated, especially for employees who rely on tips as a significant portion of their income. The Fair Labor Standards Act (FLSA) governs tipping practices and outlines specific rules for employers. In Texas, tipped employees must receive a minimum wage of $7.25 per hour, which can include a combination of direct wages and tips.
However, many employers fail to comply with these regulations, leading to wage theft or other unlawful practices. If you believe your employer has mishandled your tips, understanding your rights is critical. Consulting a Houston employment attorney can help you recover what you’re owed.
Under the FLSA, an employer may classify a worker as a tipped employee if the employee “customarily and regularly” receives more than $30 per month in tips. Common examples of tipped employees include:
Once classified as a tipped employee, the employer may take a tip credit of up to $5.12 per hour, reducing the employer’s direct wage obligation to $2.13 per hour. However, the combined total of tips and direct wages must always meet or exceed the federal minimum wage of $7.25 per hour.
A tip is a voluntary gratuity provided by the customer, typically in recognition of good service. Under federal and Texas law:
The only exception is when a valid tip pool is in place. If your employer has mishandled your tips, it may be a violation of the FLSA.
A tip pool allows tipped employees to share their tips with other workers who also customarily receive tips. Employers must follow strict guidelines when implementing a tip pool:
Example: In a restaurant, servers may share tips with bussers and bartenders, but not with kitchen staff or managers.
If an employer violates these rules, they may lose the tip credit, leading to claims for unpaid wages.
Employers must adhere to strict rules regarding tipping. Some prohibited practices include:
If your employer engages in any of these practices, consulting a Houston employment attorney can help you file a claim for unpaid wages.
Employers who violate tipping laws may face significant penalties, including:
For tipped employees, these violations can result in substantial financial losses. Contacting an attorney with experience in tipping issues in Texas can help you recover your lost earnings.
zedCan managers take tips in Texas?
No, managers and supervisors cannot take or share tips under federal law. Even if they perform some tipped duties, their supervisory role disqualifies them from participating in tip pools.
What is the tip percentage distribution in Texas?
Tip distribution percentages in Texas depend on the employer’s policy and the type of establishment. For example, in a restaurant, servers may receive the largest share, with smaller portions allocated to bussers and bartenders. Employers must ensure the tip pool complies with federal and state laws.
If you suspect your employer has mishandled your tips or failed to comply with tipping laws you might want to:
The laws governing tipping issues in Texas are complex, and many employers fail to comply with the regulations. As an experienced Houston employment attorney, I can help you:
Time is critical—contact me today to schedule a consultation and protect your rights as a tipped employee.
Tipping issues in Texas affect many workers in the hospitality and service industries. Whether your employer has improperly handled a tip pool, withheld your tips, or violated wage laws, you have legal rights. Consulting a knowledgeable Houston employment attorney can help you recover what you’re owed and ensure fair treatment. Don’t wait—take action today to address your tipping issues.
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