Owners - a question about hourly pay and tips. - Barista Exchange2024-03-29T11:23:13Zhttps://www.baristaexchange.com/forum/topics/owners-a-question-about?commentId=1688216%3AComment%3A995658&feed=yes&xn_auth=noI take no issue with owners s…tag:www.baristaexchange.com,2011-01-24:1688216:Comment:10125242011-01-24T16:22:02.970ZLisa Kettylehttps://www.baristaexchange.com/profile/LisaKettyle
I take no issue with owners splitting tips if they're doing equal hustling behind the bar on shift. Equal work, equal tips.<br></br>
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<cite>Alex said:</cite><br />
<blockquote cite="http://www.baristaexchange.com/forum/topics/owners-a-question-about?id=1688216%3ATopic%3A995443&page=2#1688216Comment1008116"><div><p>One place I worked had a very small operation. The shifts had two people on bar: usually one staff, one owner. Tips would be split equally and/or fairly at the end of…</p>
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I take no issue with owners splitting tips if they're doing equal hustling behind the bar on shift. Equal work, equal tips.<br/>
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<cite>Alex said:</cite><br />
<blockquote cite="http://www.baristaexchange.com/forum/topics/owners-a-question-about?id=1688216%3ATopic%3A995443&page=2#1688216Comment1008116"><div><p>One place I worked had a very small operation. The shifts had two people on bar: usually one staff, one owner. Tips would be split equally and/or fairly at the end of shift.</p>
<p> </p>
<p>If the combination was always owner/barista on bar. Would you feel comfortable taking 100% of the tips every day? Just curious :)</p>
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</blockquote> Great discussion, you really…tag:www.baristaexchange.com,2011-01-21:1688216:Comment:10101132011-01-21T02:52:21.538ZChase Mannhttps://www.baristaexchange.com/profile/MyCoffeePro
<p>Great discussion, you really do have to check with state laws. I've worked from one end of the country to the other and in various positions in our industry.</p>
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<p>My personal experience has been that owners and managers only take tips when they are the ONLY person working. A few places I've worked, the owners and managers combined their portion of tips for employee parties, which kept the employees happy.</p>
<p> </p>
<p>Like others have said here though, it's technically a state…</p>
<p>Great discussion, you really do have to check with state laws. I've worked from one end of the country to the other and in various positions in our industry.</p>
<p> </p>
<p>My personal experience has been that owners and managers only take tips when they are the ONLY person working. A few places I've worked, the owners and managers combined their portion of tips for employee parties, which kept the employees happy.</p>
<p> </p>
<p>Like others have said here though, it's technically a state law thing and I'm in California where neither owners nor salaried employees are supposed to share in the tips pool.</p>
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<p>I did a quick Google search of "California law regarding tips" and this was the first result:</p>
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<tbody><tr valign="top"><td class="content"><b>Q.</b></td>
<td class="content"><b>I work in a large restaurant as a waiter. My employer told me that I am required to share my tips with the busboy and the bartender. Am I obligated to do this?</b><br/><br/></td>
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<tr valign="top"><td class="content"><br/></td>
<td class="content"><b>A.</b></td>
<td class="content">Yes. According to a California court, <a href="http://www.leginfo.ca.gov/cgi-bin/displaycode?section=lab&group=00001-01000&file=350-356">Labor Code Section 351</a> allows involuntary tip pooling. Therefore, your employer can require that you share your tips with other staff that provide service in the restaurant. In this regard, it’s DLSE’s position that when a tip pooling arrangement if in effect, the tips are to be distributed among the employees who provide "direct table service." Such employees could conceivably include waiters and waitresses, busboys, bartenders, host/hostesses and maitre d’s. Employees who do not provide direct table service and who do not share in the tip pool include dishwashers, cooks, and chefs, except in restaurants where the chefs prepare the food at the patron’s table, in which case the chef may participate in the tip pool. Additionally, tip pooling cannot be used to compensate the owner(s), manager(s), or supervisor(s) of the business, even if these individuals should provide direct table service to a patron.</td>
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</table> We don't take a salary. We su…tag:www.baristaexchange.com,2011-01-20:1688216:Comment:10097322011-01-20T14:14:13.557ZRich Westerfieldhttps://www.baristaexchange.com/profile/RichWesterfield
We don't take a salary. We survive on profits and P/T gigs. Between myself and my wife, we work 8 scheduled shifts/week, most always with one other barista. Our rule is whomever we're working with keeps the first $20 and we split anything above that 50/50. Generally speaking, that's a good deal for them - they make more than they would splitting with another barista. We also almost always do the bathrooms and FOH cleaning end of day, which I know they appreciate.
We don't take a salary. We survive on profits and P/T gigs. Between myself and my wife, we work 8 scheduled shifts/week, most always with one other barista. Our rule is whomever we're working with keeps the first $20 and we split anything above that 50/50. Generally speaking, that's a good deal for them - they make more than they would splitting with another barista. We also almost always do the bathrooms and FOH cleaning end of day, which I know they appreciate. One place I worked had a very…tag:www.baristaexchange.com,2011-01-18:1688216:Comment:10081162011-01-18T05:28:24.170ZAlexhttps://www.baristaexchange.com/profile/AlexandraWright
<p>One place I worked had a very small operation. The shifts had two people on bar: usually one staff, one owner. Tips would be split equally and/or fairly at the end of shift.</p>
<p> </p>
<p>If the combination was always owner/barista on bar. Would you feel comfortable taking 100% of the tips every day? Just curious :)</p>
<p>One place I worked had a very small operation. The shifts had two people on bar: usually one staff, one owner. Tips would be split equally and/or fairly at the end of shift.</p>
<p> </p>
<p>If the combination was always owner/barista on bar. Would you feel comfortable taking 100% of the tips every day? Just curious :)</p> Kacey,
Thanks! As I work t…tag:www.baristaexchange.com,2011-01-10:1688216:Comment:9984492011-01-10T21:44:26.433ZLisa Kettylehttps://www.baristaexchange.com/profile/LisaKettyle
<p>Kacey,</p>
<p> </p>
<p>Thanks! As I work towards reducing labor (which is always a battle for any shop, I'm sure) I find this issue to be a growing concern in our shop.</p>
<p> </p>
<p>I know that the margins are slim in coffee shops, and I've always wondered how shop owners navigate paying themselves a livable wage while also cutting costs in their shops.</p>
<p> </p>
<p>Some folks I've spoken with say their incomes come from outside sources. Some of them say they pay themselves a salary.…</p>
<p>Kacey,</p>
<p> </p>
<p>Thanks! As I work towards reducing labor (which is always a battle for any shop, I'm sure) I find this issue to be a growing concern in our shop.</p>
<p> </p>
<p>I know that the margins are slim in coffee shops, and I've always wondered how shop owners navigate paying themselves a livable wage while also cutting costs in their shops.</p>
<p> </p>
<p>Some folks I've spoken with say their incomes come from outside sources. Some of them say they pay themselves a salary. It seems like a really difficult thing for an owner to decide for themselves.</p>
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<p>Thanks for the info.</p>
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<cite>Southeast Grind said:</cite></p>
<blockquote cite="http://www.baristaexchange.com/forum/topics/owners-a-question-about#1688216Comment998388"><div><p>Good topic. At my cafe I don't find it reasonable for management or owners to take tips. I think that it negatively effects the moral of the employees. Management gets paid a higher hourly wage, therefore do not take tips. When they are working alone they get paid barista wage and take tips. </p>
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<p>As the owner I take a set salary and only collect tips when I am the only on one the floor. </p>
<p> </p>
<p>The way I see it is that the more money and tips the barista make the happier they will be. I can't afford to give raises right now so I would rather them make more money from tips. This improves the overall moral of the employees which in turn makes the customers happier. I, as the owner, benefit from the business growing. If I'm more concerned with make a few $20-$50 a shift and now the overall growth of the business I feel like my priorities are misaligned. </p>
<p> </p>
<p>Hope this helps, just one more opinion :)</p>
<p> </p>
<p>Kacey</p>
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</blockquote> Good topic. At my cafe I don'…tag:www.baristaexchange.com,2011-01-10:1688216:Comment:9983882011-01-10T20:06:38.684ZSoutheast Grindhttps://www.baristaexchange.com/profile/SoutheastGrind
<p>Good topic. At my cafe I don't find it reasonable for management or owners to take tips. I think that it negatively effects the moral of the employees. Management gets paid a higher hourly wage, therefore do not take tips. When they are working alone they get paid barista wage and take tips. </p>
<p> </p>
<p>As the owner I take a set salary and only collect tips when I am the only on one the floor. </p>
<p> </p>
<p>The way I see it is that the more money and tips the barista make the happier…</p>
<p>Good topic. At my cafe I don't find it reasonable for management or owners to take tips. I think that it negatively effects the moral of the employees. Management gets paid a higher hourly wage, therefore do not take tips. When they are working alone they get paid barista wage and take tips. </p>
<p> </p>
<p>As the owner I take a set salary and only collect tips when I am the only on one the floor. </p>
<p> </p>
<p>The way I see it is that the more money and tips the barista make the happier they will be. I can't afford to give raises right now so I would rather them make more money from tips. This improves the overall moral of the employees which in turn makes the customers happier. I, as the owner, benefit from the business growing. If I'm more concerned with make a few $20-$50 a shift and now the overall growth of the business I feel like my priorities are misaligned. </p>
<p> </p>
<p>Hope this helps, just one more opinion :)</p>
<p> </p>
<p>Kacey</p> Typically it's two folks behi…tag:www.baristaexchange.com,2011-01-06:1688216:Comment:9959542011-01-06T15:58:39.766ZLisa Kettylehttps://www.baristaexchange.com/profile/LisaKettyle
Typically it's two folks behind the bar, he'll be one of those during some shifts.<br></br>
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<cite>Jay Caragay said:</cite><br />
<blockquote cite="http://www.baristaexchange.com/forum/topics/owners-a-question-about#1688216Comment995909"><div><p>Lisa-</p>
<p>Woah, half the employee tips???? Regardless of legality, that just sounds outright wrong. Maybe there's something to be said if he's one of two people working, but more than that and that just sounds "curious."</p>
<p> </p>
<p>Outside from…</p>
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Typically it's two folks behind the bar, he'll be one of those during some shifts.<br/>
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<cite>Jay Caragay said:</cite><br />
<blockquote cite="http://www.baristaexchange.com/forum/topics/owners-a-question-about#1688216Comment995909"><div><p>Lisa-</p>
<p>Woah, half the employee tips???? Regardless of legality, that just sounds outright wrong. Maybe there's something to be said if he's one of two people working, but more than that and that just sounds "curious."</p>
<p> </p>
<p>Outside from that, Starbucks not too long ago had to pay back tip wages and fines because their supervisory staff (not actual managers, but shift supervisors) had been sharing in the tip pool. I believe this was in California where they have strict labor laws regarding.</p>
<p> </p>
<p>You should probably be able to call you state's Department of Labor and see what the rules are in your area.</p>
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</blockquote> i consider it unethical to ta…tag:www.baristaexchange.com,2011-01-06:1688216:Comment:9959362011-01-06T15:48:56.176ZJared Rutledgehttps://www.baristaexchange.com/profile/JaredRutledge
i consider it unethical to take employee tips. i work three shifts a week solo, and i take tips on those shifts. but if i'm helping out on any other shift, i do NOT take tips.
i consider it unethical to take employee tips. i work three shifts a week solo, and i take tips on those shifts. but if i'm helping out on any other shift, i do NOT take tips. Lisa-
Woah, half the employee…tag:www.baristaexchange.com,2011-01-06:1688216:Comment:9959092011-01-06T15:12:18.475ZJay Caragayhttps://www.baristaexchange.com/profile/JayCaragay
<p>Lisa-</p>
<p>Woah, half the employee tips???? Regardless of legality, that just sounds outright wrong. Maybe there's something to be said if he's one of two people working, but more than that and that just sounds "curious."</p>
<p> </p>
<p>Outside from that, Starbucks not too long ago had to pay back tip wages and fines because their supervisory staff (not actual managers, but shift supervisors) had been sharing in the tip pool. I believe this was in California where they have strict…</p>
<p>Lisa-</p>
<p>Woah, half the employee tips???? Regardless of legality, that just sounds outright wrong. Maybe there's something to be said if he's one of two people working, but more than that and that just sounds "curious."</p>
<p> </p>
<p>Outside from that, Starbucks not too long ago had to pay back tip wages and fines because their supervisory staff (not actual managers, but shift supervisors) had been sharing in the tip pool. I believe this was in California where they have strict labor laws regarding.</p>
<p> </p>
<p>You should probably be able to call you state's Department of Labor and see what the rules are in your area.</p> Jay,
Thanks for the info. I…tag:www.baristaexchange.com,2011-01-06:1688216:Comment:9958202011-01-06T13:07:52.182ZLisa Kettylehttps://www.baristaexchange.com/profile/LisaKettyle
<p>Jay,</p>
<p> </p>
<p>Thanks for the info. I'm not salary, I'm hourly based on tip income. We've got an ownership change happening and the new owner will be working floor shifts. I think he intends to take minimum wage on the payroll plus half the employees tips. Other than this not helping with labor costs, I was unsure what the etiquette is. I'm going to touch base with the accountant as well. <br></br> <br></br> <cite>Jay Caragay said:…</cite></p>
<p>Jay,</p>
<p> </p>
<p>Thanks for the info. I'm not salary, I'm hourly based on tip income. We've got an ownership change happening and the new owner will be working floor shifts. I think he intends to take minimum wage on the payroll plus half the employees tips. Other than this not helping with labor costs, I was unsure what the etiquette is. I'm going to touch base with the accountant as well. <br/> <br/>
<cite>Jay Caragay said:</cite></p>
<blockquote cite="http://www.baristaexchange.com/forum/topics/owners-a-question-about#1688216Comment995776"><div><p>Lisa-</p>
<p>If I took an hourly wage, I might actually make a nice paycheck. However, as the company is a corporation and I am an employee, I am paid a salary. More than Steve Jobs official salary but less than the average hourly barista working for me.</p>
<p> </p>
<p>When working the bar with my baristas, I do not share any tips that may be given by a guest. However, if I work the bar alone (once in 2010) then I keep any tips given.</p>
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<p>However, you should check with your local and state labor regulations. In some jurisdictions, supervisory and management positions are forbidden from sharing in staff tips.</p>
<p> </p>
<p>That said, our company stays out of whatever tips may or may not be given to staff. Our baristas are paid an hourly wage above the State and Federal mandated minimum for regular employees - meaning employees who do not rely on tips to boost their wages (like restaurant servers). Tip collection, distribution and reporting to the IRS as earned income is left completely to their discretion.</p>
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