Massachusetts Laws Regarding Server Minimum Wage, Tips, Tip Pools, and Service Charges
Massachusetts Employment Attorney Representing Servers and Tipped Employees in Claims of Unpaid Wages as a Result of Unlawful Tip Pools or Unlawfully Withheld Service Charges with Offices in Lowell, Worcester, Springfield, Fall River, Barnstable, and Pittsfield
The Massachusetts Tips Act is an important law that provides important protections to tipped employees. M.G.L. ch. 149 §152A. In our experience, employers frequently violate this law by allowing employees to participate in tip pools or to take service charges when they should not. We’ve recovered over $500,000 for tipped employees for violations of this statute and have done so for individuals and in class action cases. Answers to the most frequently asked questions are below. We encourage you to contact us for a free consultation if you believe your rights may have been violated.
What is the Massachusetts tipped minimum wage for servers?
The Massachusetts Minimum Fair Wage Law requires employers to pay tipped employees at least $6.15 per hour for each hour worked in cash wages, known as a ‘service rate.’ M.G.L ch. 151 §7. In addition to this cash wage, tipped employees must be paid at least $14.25 per hour after accounting for tips. M.G.L ch. 151 §7. Massachusetts law strictly regulates an employer’s ability to pay employees a service rate. Specifically, employers can only pay employees a service rate if they comply with strict notification requirements and do so in writing. M.G.L ch. 151 §7; 454 CMR 27.03(2). In our experience, many employers miss this step and are liable for considerable damages as a result.
Is there a law that regulates tips, service charges, and tip pools in Massachusetts?
Yes. The Massachusetts Tips Act protects tips that wait staff and other service employees receive from customers. This law regulates who can and cannot participate in a tip pool, what an employer can and cannot do with your tips, and regulates what employers can and cannot do with service charges. M.G.L. ch. 149 §152A.
What is a service charge in Massachusetts and are they legal?
A service charge is a fee imposed on a patron by an employer, as opposed to a discretionary tip. M.G.L. ch. 149 §152A(a). Yes. Service charges are legal, but the Massachusetts Tips Act requires that they only be distributed to wait staff employees, service employees, and service bartenders and never to owners or managers, or supervisors.
What is a tip pool in Massachusetts and are they legal?
Yes. Tip pools are legal in Massachusetts, but the Massachusetts Tips Act requires that they only be distributed to wait staff employees, service employees, and service bartenders and never to owners or managers, or supervisors.
What employees are allowed to receive service charges or participate in a tip pool in Massachusetts?
The Massachusetts Tips Act allows for wait staff employees, service employees, and service bartenders to receive service charges or participate in a tip pool. As a general rule, only employees who provide service directly to customers are entitled to receive service charges, or participate in a tip pool. This usually includes waiters, waitresses, food runners, busboys, bartenders, and service bartenders.
In 2021, Massachusetts expanded the scope of “wait staff employee” to include employees in a quick service restaurant who prepare or serve food or beverages as part of a team of counter staff or any other counter employee.
Can hostesses, cooks, back of house, or dishwashers participate in a tip pool or receive service charges in Massachusetts?
As a general rule, no, these types of employees may not receive service charges or participate in tip pools in Massachusetts because they don’t typically provide direct service to guests or customers and, as such, are not considered wait staff employees, service employees, or service bartenders.
Are Massachusetts employers allowed to keep service charges or tips or do they have to distribute them to wait staff and other service employees?
According to the law, employers must distribute service charges and pooled tips to wait staff employees, service employees, and service bartenders in proportion to the services they provided.
Can managers, owners, salaried employees, or supervisors participate in a tip pool, or take service charges in Massachusetts?
No. Anyone with even a tiny bit of managerial authority cannot participate in a tip pool and cannot receive a portion of service charges. Here, people that are salaried tend to have some amount of managerial authority.
Can my employer make me waive my rights under the Massachusetts Tips Act?
No. The Massachusetts Tips Act expressly prohibits employers from entering into a special agreement with its employees to exempt itself from the coverage of the Tips Act. According to the Massachusetts Attorney General: “Employers may not avoid the provisions of the [Tips Act] by entering into a special contract with an employee waiving the provisions of the Act.”
What are the damages if I pursue my claims?
Employers who violate the Massachusetts Tips Act or Massachusetts Minimum Wage Law are liable to their employees for triple damages, attorneys’ fees, interest, and costs. M.G.L. ch. 149 §152A(f).
What should I do next?
Talk to an experienced employment attorney. Our initial consultation are always free. Steffans Legal has represented numerous employees across Massachusetts on an individual and class basis in claims of unpaid wages as a result of unlawful tip pools and unlawfully withheld service charges. If you are a tipped service employee in or around Worcester, Springfield, Lowell, Fall River, New Bedford, Pittsfield, or Barnstable with questions regarding wage and hour laws for tipped employees, call us today for a free consultation.
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