Tip Pooling Theft and Tip Credit Violations in Texas

Tips are the property of the employee who earned them. Yet in Texas, many employers break the law by taking tips, forcing illegal tip pools, or mishandling tip credits. At USA Employment Lawyers, we help tipped employees recover the money they are rightfully owed.

What Is Tip Pooling?

Tip pooling is when employees combine their tips to be shared among a group. Tip pooling can be legal if done correctly, but many employers abuse the system by including people who should not be part of the pool.

Tip Pooling Rules You Should Know:

• Only employees who customarily receive tips may participate in a tip pool. This typically includes servers, bartenders, bussers, and food runners.
• Managers, supervisors, and owners are not allowed to take part in tip pools.
• Employers cannot require tipped workers to share tips with kitchen staff, dishwashers, or other back-of-house employees unless the employer pays the full minimum wage without using a tip credit.
• Employers must always make sure tipped workers still receive at least $7.25 per hour when tips are included.

Tip Credit Violations in Texas:

Employers in Texas may pay tipped employees as little as $2.13 per hour if they claim a tip credit. However, this comes with strict legal requirements that many employers ignore.

Common Tip Credit Violations Include:

• Failing to ensure tips make up the difference to reach $7.25 per hour
• Requiring tipped employees to perform non-tipped work for too much of their shift without paying full minimum wage (also called the dual jobs or 80-20 rule violation)
• Using tips to cover business expenses or including non-tipped workers and managers in tip pools

If your employer has taken a tip credit without following the law, you may have a claim for back wages and damages.

Undocumented Workers Have Tip Rights Too:

Federal law protects all workers, including undocumented employees, when it comes to tips and wages. If your employer has stolen your tips, forced you into an illegal tip pool, or misused the tip credit, you have the right to make a claim and recover what you are owed.

How USA Employment Lawyers Can Help:

We review tip policies, pay records, and job duties to determine if your employer violated federal wage laws. If they have, we take action to recover your unpaid tips and wages. We handle most cases on a contingency fee basis, meaning you pay nothing unless we win.

Contact Us for a Free Consultation:

If you believe your employer has taken your tips, forced you into an illegal tip pool, or violated tip credit rules, contact our Texas wage and hour lawyers today. We are ready to help you protect your rights.