California Tip Laws – What Service Workers Need to Know (With 2025 Updates) - Shouse Law Group
Under California law, you have the right to keep any tips that you earn. Employers may not offset your tips against your regular wages.1
Tip pooling is legal as long as the money is not shared with owners, managers, or supervisors. Plus, your employer is responsible for any credit card fees on tips.
If your boss misappropriates your tips, you can file a complaint with the California Labor Commissioner’s Office or file a lawsuit.2 Employers who violate tip laws also face criminal misdemeanor charges.3
Below, our California labor and employment lawyers discuss everything you need to know about tip laws.
- 1. Your Rights
- 2. Credit Card Fees
- 3. Tip Pooling
- 4. What counts as tips?
- 5. Service Charges
- 6. Can I sue my boss?
- 7. Statute of Limitations
- 8. Employer Retaliation
- Additional Reading
Also listen to our informative podcast:
PODCAST: California Tip Laws – What Service Workers Need to Know
10:13
PODCAST: California Tip Laws – What Service Workers Need to Know
10:13
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- Transcript
1. Your Rights
Under California Labor Code 351 LC, tips that are paid to you or left for you are your property.4 This means that your employer may not:
- Take any part of your tips or gratuities for themselves,
- Deduct any amount from your wages due to the tips you received,
- Deduct employer expenses (such as uniforms) from your tips, or
- Credit any part of the tips against your wages (called “tip credits”).5
Furthermore, what you earn in tips also cannot count toward your minimum wage or overtime pay...
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