Legal Question in Business Law in Iowa

owner keeps some tip money for herself
I have a question... I am a college student who works part-time for a catering business and am paid primarily off the gratuity we charge. It is a standard 17% that is divided up amongst the servers. That seems fair... except for the fact that the owner, who does very little work while we serve, decides that since she is helping she is entitled to a portion of the tip money. In fact... she divides the tip as if she were a server herself. It sounds illegal to tip yourself... but am just wondering what the law says

Asked on 8/07/06, 1:06 pm

Robert Luedeman solo practitioner

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Re: owner keeps some tip money for herself

Do you have a written agreement as to how the money should be divided or who is entitled to it?

Absent something that shows how the money is to be divided I do not see how a claim for an allocation of it could be supported.

I myself do not patronize establishments with mandatory gratuities, for just such reasons as you yourself have set out.

Answered on 8/07/06, 1:48 pm

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