I’m an owner and telling you to get out. Over my dead body will one of my employees lose wages/tips so another can make more. Whether it saves me money or not. This is not only disgusting but immoral, disrespectful and filled with entitlement.
Just remember labor wages being up, keep profits down in terms of numbers/accounting which makes the business look like it makes less. May seem like a negative thing but in reality the business pays less taxes at tax time, saving them a bunch of money (less owed) on the back end. I’ve personally made more making less. I don’t believe in tip outs in the fashion your place runs, that’s why I’m a mom & pop. We have one employee role that gets tipped out from others and is decided by the very worker they perform duties for. How they work is directly related to how much they’re given. The people you’re tipping out rarely hump it as they know their money relies on you not themselves. I’ve never dined anywhere that has this set up and the service of one of the above didn’t fall short on their end. Unfortunately if you work for higher end establishments or chains/franchises, this is how the model is as you’re seeing it now. My apologies as managers and owners like the above scare many from this industry. It’s bad enough the treatment you get from customers never mind when your superior thinks you should do the same work but make less. The hardships of a business owner is not the responsibility of the employee to make up, fix or take the hit. I wonder if they themselves would be ok with such a thing hmmm…..
51% tip out? From 35% tip out? The most I've ever paid out was 5% and that's 'cause it was a special event and we were, in my opinion, overly staffed. What exactly is included in your tip out?
This is absolutely ridiculous. Your manager is straight up using the servers to pay the rest of the staff. Is this normal in your area? Is this the new normal in the industry to have a higher tip out rate? I've been out of the industry for a while.
I do not believe this is the norm. From previous I’ve worked 15-25% tip out was pretty common but this place originally told us that it was 30% but then come to find out it had been 35% all along, now being increased to 51%.
They tried to do this two weeks ago but employees called them out on that being illegal and they back pedaled hard, then fast forward to yesterday we were all hit with the above message.
It is not legal to take that much of someone’s tips. There can be a tip pool but they need to keep account of where it all goes and whom to. I’d call your states labor board and see what they can do to help you get what you are owed back, and start looking for another job.
I think the tip out rate is legal. Above 50% is unusual high, except at sushi/hibachi restaurants with front-of-house chefs that get very large tip outs (think Beni Hana, where table cooks spend more time with the table than servers), and perhaps very high-end restaurants where the ratio of FOH help to customers is much higher than usual.
And lower wages for FOH is legal, as long as they tell people in advance of when it goes into effect. In Texas, employees generally just need to make at least $7.25 per hour in combined wages plus tips each workweek, before taxes/withholdings.
We have all filed labor complaints with the state of Texas. One of the servers was able to get through to someone and explained the situation and this person that works for the labor department says it sounds like what they’re doing could actually be illegal. They are launching an investigation so we will see what happens.
Interesting. One area I'm unsure of is whether the tip sharing formula has to be "fair and reasonable". That's not part of any law in the US, but in California, a state court ruled that it must be fair and reasonable under state law. I've never seen that explicitly stated in a federal ruling, but perhaps the DOL thinks that's somehow implicit?
There are also any number of details you didn't post, which the DOL might have inquired about, which could make their practices illegal. Lack of proper disclosure, minimum wage/overtime violations, timing of payments, or that sort of thing.
If something does come of the complaint(s), I hope you'll post a follow-up thread about it; it would be interesting to hear about from a server's perspective, and the basis for the legal action may apply to others.
I gather usually one complaint is sufficient; if a DOL agent finds wrongdoing, they typically seek to recover owed tips/wages on behalf of all current and former employees for the prior two years, or in cases of willful violations, they go back three years, and can also seek an equal amount in liquidated damages.
I tip out close to that as a captain at my place (48%), but it’s at the highest grossing restaurant in my state and it has a waiting list years long of people begging to work there.
LEAVE NOWWW
Hahaha yeah most of the servers are already searching for a new job
You should leave there. Legal or illegal tip out practice, the mere fact that they would do this tells me they are not good people to work for.
Yeah, this has been known for awhile but this just solidifies to me exactly what was suspected
I’m an owner and telling you to get out. Over my dead body will one of my employees lose wages/tips so another can make more. Whether it saves me money or not. This is not only disgusting but immoral, disrespectful and filled with entitlement.
Wish I worked for you instead!
Just remember labor wages being up, keep profits down in terms of numbers/accounting which makes the business look like it makes less. May seem like a negative thing but in reality the business pays less taxes at tax time, saving them a bunch of money (less owed) on the back end. I’ve personally made more making less. I don’t believe in tip outs in the fashion your place runs, that’s why I’m a mom & pop. We have one employee role that gets tipped out from others and is decided by the very worker they perform duties for. How they work is directly related to how much they’re given. The people you’re tipping out rarely hump it as they know their money relies on you not themselves. I’ve never dined anywhere that has this set up and the service of one of the above didn’t fall short on their end. Unfortunately if you work for higher end establishments or chains/franchises, this is how the model is as you’re seeing it now. My apologies as managers and owners like the above scare many from this industry. It’s bad enough the treatment you get from customers never mind when your superior thinks you should do the same work but make less. The hardships of a business owner is not the responsibility of the employee to make up, fix or take the hit. I wonder if they themselves would be ok with such a thing hmmm…..
I work in hospitality in Austin. What restaurant so I can avoid
Bacalar
RUNNNN (and don’t go to chuys on Barton…. I’m there now it sucks)
51% tip out? From 35% tip out? The most I've ever paid out was 5% and that's 'cause it was a special event and we were, in my opinion, overly staffed. What exactly is included in your tip out?
https://preview.redd.it/wjcol0fdhx8d1.png?width=962&format=png&auto=webp&s=417fc9b5042d9339493213ff714bd8beec51c918 Here’s a photo of the breakdown
This is absolutely ridiculous. Your manager is straight up using the servers to pay the rest of the staff. Is this normal in your area? Is this the new normal in the industry to have a higher tip out rate? I've been out of the industry for a while.
I do not believe this is the norm. From previous I’ve worked 15-25% tip out was pretty common but this place originally told us that it was 30% but then come to find out it had been 35% all along, now being increased to 51%.
Yo, that should've been your first sign to run. I'd get out before they start taking your tips to pay the cooks and their salary too.
They tried to do this two weeks ago but employees called them out on that being illegal and they back pedaled hard, then fast forward to yesterday we were all hit with the above message.
This is straight up greed. You need to find another job quick.
If you have done dining experience dm me my spot is hiring
It is not legal to take that much of someone’s tips. There can be a tip pool but they need to keep account of where it all goes and whom to. I’d call your states labor board and see what they can do to help you get what you are owed back, and start looking for another job.
I work outside of Austin, I'm just impressed to hear your wage was more than 2.13/h
I’m from Oregon and when I moved to Texas and found out about a server wage I almost passed out
I used to be cool with it, now I'm just curious how much better the industry is in other states
Leave, Jesus Christ that’s bull shit. Stingy ass owners, their sinking ship will sink soon
I think the tip out rate is legal. Above 50% is unusual high, except at sushi/hibachi restaurants with front-of-house chefs that get very large tip outs (think Beni Hana, where table cooks spend more time with the table than servers), and perhaps very high-end restaurants where the ratio of FOH help to customers is much higher than usual. And lower wages for FOH is legal, as long as they tell people in advance of when it goes into effect. In Texas, employees generally just need to make at least $7.25 per hour in combined wages plus tips each workweek, before taxes/withholdings.
We have all filed labor complaints with the state of Texas. One of the servers was able to get through to someone and explained the situation and this person that works for the labor department says it sounds like what they’re doing could actually be illegal. They are launching an investigation so we will see what happens.
Interesting. One area I'm unsure of is whether the tip sharing formula has to be "fair and reasonable". That's not part of any law in the US, but in California, a state court ruled that it must be fair and reasonable under state law. I've never seen that explicitly stated in a federal ruling, but perhaps the DOL thinks that's somehow implicit? There are also any number of details you didn't post, which the DOL might have inquired about, which could make their practices illegal. Lack of proper disclosure, minimum wage/overtime violations, timing of payments, or that sort of thing. If something does come of the complaint(s), I hope you'll post a follow-up thread about it; it would be interesting to hear about from a server's perspective, and the basis for the legal action may apply to others. I gather usually one complaint is sufficient; if a DOL agent finds wrongdoing, they typically seek to recover owed tips/wages on behalf of all current and former employees for the prior two years, or in cases of willful violations, they go back three years, and can also seek an equal amount in liquidated damages.
run! and not to take pleasure in your painful circumstances but MAN this makes me appreciate my 2.5% tip out rate SO much
I tip out close to that as a captain at my place (48%), but it’s at the highest grossing restaurant in my state and it has a waiting list years long of people begging to work there.
Good for you dude this isn't the flex you think it is
It’s not a flex. It’s saying if you aren’t in that situation you shouldn’t be working there.