Can my employer take part of my tips in California?

The short answer

No. California Labor Code Section 351 says your employer and its agents can’t share in or keep any part of a tip a customer leaves for you. The state labor office reads it to allow a required tip pool, as long as the pool isn’t used to pay the owners, managers, or supervisors. California also doesn’t let your employer count your tips toward the minimum wage.

The rule in California

Who can’t touch your tipsYour employer and anyone acting for it can’t share in or keep any part of a tip left for one or more employees.
Required tip poolsAllowed, as long as the pool doesn’t pay the owners, managers, or supervisors of the business.
Tips and minimum wageYour employer can’t use your tips as a credit toward the minimum wage.
“Labor Code Section 351 prohibits employers and their agents from sharing in or keeping any portion of a gratuity left for or given to one or more employees by a patron.” (California DIR: Tips and gratuities FAQ)

What’s different in California

Federal wage law already bars your employer, managers, and supervisors from keeping tips. What changes in California is the wage underneath. Because tips can’t be credited toward the state minimum, your employer owes you the full $16.90 an hour before any tip lands. So a pool here never props up your base pay; every pooled dollar is extra money on top of wages already owed.

The labor office answer on involuntary pools is short. It names who a pool can’t pay (owners, managers, supervisors) and says nothing about which coworkers must be included, so ask your house to show you its written pool policy and the split each shift.

Official sources

Last verified

. Checked the agency pages linked above.

Still open: The labor office’s pooling answer is marked “updated March 2013.” It’s the office’s current page, but it hasn’t been revised since then.

TipMax Answers explains public government guidance on pay and workplace rules in plain English for tipped workers. It is not legal, tax, or accounting advice. Rules change and local rules can add to them. Confirm with the agency linked on this page or a qualified professional. TipMax the app helps you track tips and pay; it doesn’t enforce wage law or decide disputes.