California employers in the hospitality industry must navigate complex tipping laws to ensure compliance and avoid costly mistakes. In this video, I break down five key issues every employer should understand when it comes to tips, including who legally owns a tip, the rules around employer-mandated tip pooling policies, and whether tips impact overtime calculations and that California does not have a minimum wage tax credit. I also discuss the differences between mandatory service fees and tips and the potential impact of the “No Tax on Tips” movement on California businesses.
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