Is it ever OK for a boss to take tips from SC workers? Here’s what the law says
South Carolina is littered with excellent restaurants that serve all manner of delicious foods, from Italian to barbecue and French cuisine. But those restaurants would be unable to function properly without their waitstaff.
According to the U.S. Bureau of Labor Statistics, there were 42,470 waiters and waitresses working in South Carolina in 2023. The median hourly wage was $8.98 for those workers.
Given the pay statistics, many waiters and waitresses would struggle to make ends meet without tips from customers.
So then, are there laws that prevent bosses from taking tips from workers in South Carolina?
Is it legal for your boss to take tips in SC?
Managers and supervisors are prohibited from taking an employee’s tips under the Fair Labor Standards Act.
“An employer may not require an employee to give their tips to the employer, a supervisor, or a manager, even where a tipped employee receives at least the federal minimum wage (currently $7.25) per hour in wages directly from the employer and the employer takes no tip credit,” the U.S. Department of Labor states.
According to the act, supervisors and managers can only keep tips that they receive directly from a customer for a service that they have provided.
Can SC employers pay less than minimum wage?
South Carolina does not have its own tip and wage laws, meaning employers in the state must follow the federal tip credit rules. As a result, South Carolina employers can pay as little as $2.13 an hour, as long as the employee earns enough tips to add up to the federal minimum wage of $7.25 an hour, according to nolo.com. Any employee who doesn’t earn at least $5.12 an hour in tips must be paid the difference by their employer.
Still, employers can take a tip credit, but only if the employee earns at least $30 a month in tips. An employer must give employees notice of the amount of the credit.
What about tip pooling in SC?
Tip pooling arrangements are legal, but only if they are structured correctly, Falls Legal LLC in Charleston states.
“Tips can be shared between a server and anyone else who customarily serves patrons such as servers, bellhops, hosts/hostesses, bartenders, and busboys,” Falls Legal writes. “However, servers and other tipped employees may not be required to share tips with back-of-the-house employees (or employees who do not customarily interact directly with the guests) including dishwashers, cooks, expeditors, chefs, and janitors. Additionally, supervisors and managers are not allowed to participate in tip pools.”
How to file a wage complaint in SC
Complaints involving minimum wage or tips should be filed with the U.S. Department of Labor.
Here is the basic information needed to file a complaint:
- Your name
- Your address and phone number
- The name of the company where you work or worked
- Location of the company
- Phone number of the company
- Manager or owners name
- Type of work you did
- How and when you were paid
This story was originally published August 1, 2024 at 6:00 AM.
