Legal Question in Business Law in New York

I am opening a deli in NY. If I display a tip jar for my employees am I permitted to use those funds collected from customers to pay for the raw cost of my employees consumption of food for lunch/dinner? If not, should I be deducting potential cost(s) out of their paycheck?


Asked on 1/09/12, 10:54 am

2 Answers from Attorneys

Kristen Browde Browde Law, P.C.

No. A tip jar is for tips.

If you're planning to deduct costs from them you should make sure that you have their agreement prior to doing so: it will be a lot cheaper than getting sued by one of them after the fact.

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Answered on 1/09/12, 11:12 am

I concur with my colleague, taking money out of their tips is a big no-no.

You should post a clear written notice to your employees noting that if they eat the deli's food they are expected to pay for it.

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Answered on 1/09/12, 12:53 pm


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