For anyone working in the service industry, tips often make up the bulk of a person’s income. Because federal regulation only requires employers to pay $2.13 an hour (strikingly below the federal minimum wage of $7.25), every tip earned is crucial. However, employers may try to intercept these tips, take some for themselves, or withhold the compensation altogether. When that happens, employees should take action immediately. Contact the experienced North Carolina Wage and Hour Act (NCWHA) lawyers for a free consultation to pursue your lost wages and other damages.
The Fair Labor Standards Act (FLSA)
The Fair Labor Standards Act (FLSA) is a federal regulation that regulates key employee rights. This includes:
- Wage Standards: The federal minimum wage is $7.25. Additionally, the FLSA addresses overtime regulations. For non-exempt employees, every hour clocked over 40 in a workweek automatically increases their hourly rate to time and a half.
- Subminimum Wage Provisions: The minimum wage law has certain exceptions. Tipped employees are one such exception, and they can receive a pay rate of only $2.13 an hour. As such, employers must provide tips to their employees.
- Definitions: The FLSA defines essential terms used in wage laws, such as “workweek”, “exempt”, “nonexempt”, and more.
The North Carolina Wage and Hour Act (NCWHA)
Employees in North Carolina have rights at both the state and federal levels. The NCWHA is a state-level wage and hour law with many of the same protections as the FLSA and strengthens unpaid wages rights for North Carolina employees. The law provides greater protections to employees for other forms of compensation violations, including, but not limited to, unpaid bonuses, commissions, vacation pay, or other promised wages.
Understanding Unpaid Tips
Employers cannot confiscate the tips their employees earn. A manager or supervisor who did not directly serve a customer is not entitled to an employee’s tips. Unfortunately, business owners and managers have been known to surreptitiously withhold tips or lie about their right to take tips from employees.
Tipping Through Point of Sale (POS) Systems
In recent years, POS systems have become ubiquitous across many industries. Customers paying by debit or credit card will more often than not have the opportunity to leave a tip on the same screen where they pay a bill. Wage and hours laws regard this type of tip collection as handing over cash. Therefore, an employer must track and release those funds to their employees. Employers keeping any portion of POS tips are violating the law. When this happens, it’s important to know what you can do.
How to Recover Unpaid Tips
Recovering unpaid wages can vary based on your circumstances. Here are some of the most crucial steps to take in any case:
- Gather Evidence – Collect as much documentation as possible if you believe your employer is illegally confiscating tips or other wages. Depending on the workplace, this could include timecards, pay stubs, receipts, etc.
- Detail What Violations Occur – Illustrate when you believe your tips were stolen, how this occurred, and what amounts you are owed.
- Contact an Attorney – Employees who are the victims of wage theft do not have to handle it alone. Maginnis Howard’s unpaid wages attorneys specialize in holding employers accountable for unpaid tips and other compensation. Our attorneys can help you file a complaint with the Department of Labor if necessary.
Compensation For Unpaid Wages
Filing a lawsuit for unpaid wages can be an effective solution for employees struggling to recover what they earned. The compensation you recover will vary based on the amount of wages withheld, the number of employees involved, and more. If you can prove the employer willfully failed to pay you minimum wage, you are entitled to double damages and attorneys’ fees. To get the most for your unpaid wages claims, contact our experienced lawyers.
Contact an Attorney for Unpaid Tips
If you are facing issues with unpaid tips, particularly those managed through POS systems, don’t hesitate to reach out for assistance. Contact Maginnis Howard today for a free consultation and let us help you recover what you earned. We offer free consultation and accept most wage and hour cases on a contingency basis. That means you don’t pay anything unless we recover compensation for you. Our unpaid wages attorneys represent clients across the Carolinas from our Raleigh, Charlotte, and Fayetteville offices.
