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Thursday, April 9, 2026

Local restaurant pays good hourly wage, but unlawfully keeping tips - Wyoming Tribune

Imagine. During a pandemic, restaurants are faced with new protocols for staff and customer safety. On top of a shortage of workers.

Add to it that many are struggling to keep the doors open due to a decline in foot traffic (hard to get butts in seats when many are quarantining at home!). I'm sympathetic to the change that has been wrought upon this industry since COVID-19. What I'm less than sympathetic about? Not treating workers respectfully or legally.

A close family member worked at a local restaurant, where she was pleasantly surprised to be offered an hourly wage of $10 per hour. But she came to me one day and mentioned that the owners kept the tips – 100% of them. After months of employment, not receiving a single tip, she was even more surprised when she was handed a $20 directly from a customer and the owner let her keep it. She said that he didn't want to look badly in front of them.

I understand that under federal and Wyoming law, tips belong to the employee. I am also aware that certain instances, however, allow the employer to keep part of a tip ... tip credit (part of the tip goes toward the employer's obligation to pay the minimum wage). Tip sharing or tip pooling. Credit card processing fees. I understand all that – but shouldn't the employee be seeing some of the tip?

Under WY Statute 27-4-507 (through 2012), "(a) Tips and gratuities received by an employee or employees shall be the sole property of such employee or employees and not payable in whole or...



Read Full Story: https://www.wyomingnews.com/opinion/letters_to_editor/local-restaurant-pays-g...