
Is Withholding Tips Illegal in Virginia?
Is withholding tips illegal in Virginia? A large portion of Virginia employees who wait tables, serve or mix drinks, open doors, clean hotel rooms, or provide other services, earn tips. In fact, some employees earn more tips than they do wages. If you receive tips as part of your compensation, your legal rights under the wage and hour laws are a bit more complex. This creates many questions. What counts as a tip? How much does your employer have to pay you? Do you have to contribute to a tip pool? Tip Basics While most of these laws will depend on your state, federal and state law dictates that they belong to the employee, not the employer. Your employer may not require you to hand over tips unless one of the following exceptions applies. Tip Credit State law allows the employer to take a tip credit. This means that the employer counts all or part of an employee’s tips toward their minimum wage obligations. So, even though the employer doesn’t technically “take” the employee’s tips, the employer gets to count some tips as though the employer paid them directly to the employee. Virginia allows employers to take a tip credit.