Legal Question in Employment Law in Pennsylvania

Re: restaurant law

You asked if a restaurant owner can keep gratuities given to a service provider.

As always, it depends. If the gratuity was left as part of a bill and there was a policy in place where the employee forfeit all gratuities then yes. As with any employment situation an employee is eligible to bargain with his/her employer.

If on the other hand there is no policy in place and a gratuity was left with the express intent of the customer that it would inure to the service person then no.

Most likely your situation will fall somewhere in between. An employer can manage tips for an employee but generally cannot keep them without an express policy to that effect. Would you work there if you didn't get tips? But, in connection with managing tips the employer can legitimately keep a SMALL portion as a fee and must withhold taxes and such from the remainder.

As a practical matter, very few restaurants or bars do keep tips because to do so would mean unhappy, and possibly bad, employees. Caterers more often keep tips and allocate them as they see fit, if at all.

Many places pool tips and disburse the pooled tips according to a schedule. Personally, I think this is the most fair as the many employees behind the scenes enjoy the benefits of the tips as well as the customer interface person. After all, if the chefs, line cooks and prep cooks, busboys, bar backs, bouncers, maitre d', cleaning crew and manager weren't there would the server or bartender be able to do his or her job.

Regards.