Legal Question in Business Law in California

Re: restaurant G.M. harrassment

Without answering your question as to whether your demotion is illegal harrassment, I'd like to question your premise.

What makes you think the law only requires you to report tips up to 8% of checks? I know of no tax law that authorizes under-reporting of tips. In fact, Internal Revenue Code section 6053(a) says:

"Every employee who, in the course of his employment by an employer, receives in any calendar month tips which are wages (as defined in section 3121(a) or section 3401(a)) or which are compensation (as defined in section 3231(e)) shall report all such tips in one or more written statements furnished to his employer on or before the 10th day following such month. Such statements shall be furnished by the employee under such regulations, at such other times before such 10th day, and in such form and manner, as may be prescribed by the Secretary."

While IRC section 6053 does go on to discuss an 8% reporting figure (in 6053(c), as I read the law this applies to employers, not employees.

So, I would say the plain black-and-white letter of the law is that an employee is required by law to report ALL such tips, not just up to 8%.

So, tp paraphrase the country song, what part of "all" don't you understand?

I hasten to add that I am not an expert in this area of the law and there may be sides to this issue that I don't know, but 6053 looks pretty darn clear to me.