May 2011 federal law changed regarding tips. If you do not know what is says you better read it and change your practices if you haven’t already complied to the new laws.
If the Labor Dept. does an audit on your labor wages and tips practices and finds you have not abided by the law... you will be paying 2 years back wages for tips not distributed properly plus they can fine you as well. If you do accept CC tips then a CC processing fee for the tip portion only can be deducted from the tip amount to cover the cost of the processing ... unless it takes a ’tipped employee’ below minimum. Nothing can take a tipped employee below minimum. There are totally different laws regarding ‘tipped employees’, wage employees, managers and owners. Know your laws! Federal and STATE!!!
We kept asking our accountant are we ok, is our policies ok with labor laws... they didn’t even know it had changed.
If you own a business, you are responsible for knowing the Labor and Wage laws. If there are tips being given in your establishment the feds say you have to report so they can get their share.