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California Employment Law Glossary

Tip Pooling and Tip Theft
Wage & Hour

 

Definition


 

California law strictly protects tipped workers. Employers and managers are prohibited from taking any portion of employee tips. Mandatory tip pools must include only employees who customarily receive tips - not supervisors or managers. Tip theft is classified as wage theft and carries the same civil remedies, including penalties and attorney's fees.


Frequently Asked Questions

No. California law prohibits employers, owners, and managers from taking any portion of tips left for employees, whether directly or through a tip pool.

Only employees who customarily and regularly receive tips - such as servers, bartenders, and bussers - can share in a mandatory tip pool. Supervisors and managers generally cannot participate.

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Tip theft from California workers is a serious legal violation. A free case review can tell you if you have a claim worth pursuing.
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This glossary is provided for informational purposes only and does not constitute legal advice. Reading this page does not create an attorney-client relationship with Lawyers for Employee and Consumer Rights. Laws change - for advice specific to your situation, contact our office for a free case review.