Massachusetts Laws About Tips, Tip Distribution, Tip Pools, and Service Charges
Massachusetts Employment Lawyer Representing Employees In Unpaid Tips and Service Charge Claims In Springfield, Worcester, Lowell, Fall River, New Bedford, Cape Cod, and Pittsfield
The Massachusetts Tips Act regulates what employers can and cannot do with tips and service charges. It’s an incredibly complex statute that is hard to comply with and easy to violate. The most commonly asked questions regarding this statute are answered below. We’ve recovered hundreds of thousands of dollars in these types of cases and are happy to help if we can. Have questions? Schedule a free consultation today.
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Frequently Asked Questions Regarding Tips, Tip Pools, and Service Charge Laws
Is there a law that regulates tips, tip pools, and service charges in Massachusetts?
Yes. The Massachusetts Tips Act protects tips that waiters and other service employees receive from customers. This law regulates who can and cannot participate in a tip pool, what can and cannot be done with tips, and regulates what employers must do with service charges.
What Employees are allowed to receive tips in Massachusetts?
The Massachusetts Tips Act allows for wait staff employees, service employees, and service bartenders to receive tips. As a general rule, only employees who provide service directly to customers are entitled to receive tips and to participate in tip pools. For example, hostesses are typically not entitled to take tips or participate in tip pools, whereas food runners and busboys usually are.
What Employees Are Allowed to Receive service charges in Massachusetts?
Typically, a service charge is a fee imposed on a patron by an employer, as opposed to a discretionary tip. According to the Massachusetts Tips Act, employers must distribute service charges to wait staff employees, service employees, and service bartenders in proportion to the services they provided. Generally, service charges cannot be retained by owners.
Can managers, supervisors, or owners participate in tip pools, take tips, or take service charges in Massachusetts?
Under most circumstances: absolutely not. There are limited exceptions, but the general presumption is a definite "no."
What damages are employers liable for if they unlawfully withhold tips and service charges?
Employers may be liable for triple damages, attorneys’ fees, interest, and costs.
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