I think my girl friends employeer is ripping her off...legal advice needed pls

[J-Dogg]

I have employee's of my own so I'm fairly familar with Michigan Labor Laws. But I am sure they are breaking the law here obviously, but I'm not sure the best way to go about busting them on it.

She is going to school for cosmetology and working at a franchised restaurant while attending school.

Well it's winter, so it's really the slow season in our tourist based town. She does not make jack for money. She'll work a 6 hour shift and complain she makes $17. Her sales will be right around $200.00 a night for a 6 hour shift.

Her base wage is $2.65 an hour (min wage for a person who collects tips) but in Michigan, tip based employee's still have to make $7.40 an hour with Tips+Pay.

She has a print out of the week stating she claimed 117.17 in tips.

On her pay stub, It says she collected 190.04 in tips.

She worked 40.03 hours (2 week pay period).

40 hours at the $2.65 = 106.08


So she claims 117.17 + collects her wage of 106.08 =$223.35


That's 40.03 hours (sorry if the numbers make it more difficult to understand) she worked, and made $224.34, or about $5.58 an hour.

40.03 hours, at minimum wage in Michigan would be $296.22.

She claimed 117.17 in tips, but her pay stub says she claimed $190.40


Oddly, what her pay stub says she claimed (190.04) plus her wage (106.09) turns out to $296.13

And 296.13 = rounds up exactly to $7.40.

I know the numbers are right, and they are adding about $80 a pay period to what she claims. So she's paying taxes on $80 she is not even making.

Generally servers claim between 8-12% of there sales. Her sales are under $900 for this pay period so claiming $190 she would be claiming over 21%?

I printed out all the laws for her, and did the math on the print out she had. But Would it be worth just waiting and seeing how frequent this happens and maybe talking to a lawyer?

[Pocketbattleship2B]

I didn't read it all and being Irish i can't help much on the legality of things but here min wage is min wage, (€8.75 per hour or about $12.56 ), it doesn't matter if you are tipped or not thats what you get min or they are breaking the law, tips are on top of your min wage. You employ people if you wouldn't treat your employees how she is being treated tell her to either confront her employer or find a new job.Hard I know but what choice has she?

[Bossman]

[QUOTE=J-Dogg;5027294]
Her base wage is $2.65 an hour (min wage for a person who collects tips) but in Michigan, tip based employee's still have to make $7.40 an hour with Tips+Pay.

My daughter has been a server for 6 years in Michigan. Started in high school and is working her way through college. I've never heard that tips plus wages must equal min wage? Most of the time she is over. But with one job she had, it wasn't uncommon for her to come home with no tips every now and then. They would cut her after a couple of hours if she had no tables, but then again, no tips, just hourly $2.65. If you can point me in the direction of that law in print I would appreciate it.

[CMPD213]

I live in michigan, and my family owns a restaurant as do my grandparents... Been in the restaurant buisness my whole life and i agree with CGB6810, i have never heard of the law that a tip based employee has to make $7.40 an hour with tips + pay..

Not only have i never heard of that law but that law would not make sense to me because sometimes the waitresses can walk out with $150 in tips in their 6 hour shift. That's $25 dollars an hour + there $2.65, so how would that make it fair to a dishwasher who makes $7.40 or a cook who makes $10.00 no matter how busy it is?... I don't think that law exists, no offense. I'm not trying to argue with you, just saying my parents or grandparents or myself have never had someone come and say i only make $20 dollars in tips in my 6 hour shift so you have to pay me 4.50 an hour today. It just isn't right.

[firsttimer555]

google Michigan min wage labor laws

[firsttimer555]

This comes from my wife uncle he a lawyer hope it helps


Do I have to pay minimum wage to employees who receive tips?

It depends on how generous your customers are. Under federal law, as long as an employee routinely earns at least $30 per month in tips, you can pay the employee as little as $2.13 an hour. However, the amount you pay plus the tips the employee actually earns must bring the employee's earnings up to minimum wage level. If the employee's total earnings fall short of the minimum wage, you must make up the difference.

Some states, including California, don't allow employers to pay tipped employees less than the minimum wage. And some states require employers to pay a higher hourly amount to tipped employees (though still less than the state or federal minimum wage).

For more information on minimum wage laws, see When Do I Have to Pay the Minimum Wage?

[J-Dogg]

I live in michigan, and my family owns a restaurant as do my grandparents... Been in the restaurant buisness my whole life and i agree with CGB6810, i have never heard of the law that a tip based employee has to make $7.40 an hour with tips + pay..

Not only have i never heard of that law but that law would not make sense to me because sometimes the waitresses can walk out with $150 in tips in their 6 hour shift. That's $25 dollars an hour + there $2.65, so how would that make it fair to a dishwasher who makes $7.40 or a cook who makes $10.00 no matter how busy it is?... I don't think that law exists, no offense. I'm not trying to argue with you, just saying my parents or grandparents or myself have never had someone come and say i only make $20 dollars in tips in my 6 hour shift so you have to pay me 4.50 an hour today. It just isn't right.

*Effective July 1, 2008, the combined earnings for tipped employees
must equal $7.40 an hour.

http://www.msbo.org/services/biz/2006/MinimumWage.pdf
(Page 2)

They know it's combined, or they would not change the amount she claims to make her combined wage to exactly $7.40.

[CMPD213]

News to me!!! Have her bring it to her bosses attention, he might pay her off to keep it hush hush

[CMPD213]

I just thought about this... Has she claimed every tip she's ever made there?... I was talking to my dad and he said the restaurant can easily fight that and win, unless the tips are all counted at the end of the shift every time they work.

Basically what he's saying is that more often than not the waitress will meet minimum wage, what about those times they make $100+ in a night. If you're not saying you made that then you're not getting taxed on that you're getting taxed on your $2.65 that goes on check.

Maybe she should bring it to her bosses attention, and see what he says.

[Bossman]

*Effective July 1, 2008, the combined earnings for tipped employees
must equal $7.40 an hour.

http://www.msbo.org/services/biz/2006/MinimumWage.pdf
(Page 2)

They know it's combined, or they would not change the amount she claims to make her combined wage to exactly $7.40.

Thanks for the link J-Dogg. I've never heard of this before.

No employer wants to be audited by the Dept of Labor. I think just mentioning the law, possibly bringing in a copy of this link, would be all it would take to get them in line. I don't think its necessary to get a lawyer involved, at least at this point IMO.

Good info!!

[NVR2BIG1]

Man, I wouldnt even bother with that, apply at another restaurant

[Bossman]

Man, I wouldnt even bother with that, apply at another restaurant

The economy in Michigan is the worst in the nation and they're in a small tourist town. She's lucky to have a job.

[J-Dogg]

I just thought about this... Has she claimed every tip she's ever made there?... I was talking to my dad and he said the restaurant can easily fight that and win, unless the tips are all counted at the end of the shift every time they work.

Basically what he's saying is that more often than not the waitress will meet minimum wage, what about those times they make $100+ in a night. If you're not saying you made that then you're not getting taxed on that you're getting taxed on your $2.65 that goes on check.

Maybe she should bring it to her bosses attention, and see what he says.

I'm sure she is not claiming to the cent, but she is claiming fairly accurate because her sales are so low.

I actually managed a restaurant for 8 years, all through my college years. It was a franchised restaurant also, doing about 200k in sales a month. It's why I'm familiar with most of Michigan Labor laws. I had to take care of a 50+ person time keeping, and an accounting firm did payroll.

The IRS does not look at individual sales, but over all sales vs. tips claimed. We had to try and keep servers claiming ABOVE 8%. It would even out, some girls would claim up to 12%, some would claim a little under 8%.

In that restaurant, the girls were making good money, if someone was claiming too low, I would talk to them at the pay period, and tell them they were claiming under 8%, so they could correct it for the next pay period.

In this case, my girl friend is claiming over 13%.

Now, if the IRS had an issue with that, they would have their hands full. But she would never even be under the scope of the IRS claiming 13%.

The real issue is not even her, or the IRS....

The issue is, she is claiming 117.00, and her employer is fudging the numbers to 185.00.

They could certainly say "Hey some times you make more". But that does not matter. If you are working as a cook making $15 an hour 4 days a week, that does not mean they can pay you $2 an hour to wash dishes on the weekend and it will "even out".

It's the responsibility of the employer to follow the guidelines, employee's have to make at least $7.40 an hour every day they work.

They can't "assume" she is making 21% in tips at a little franchised pizza restaurant with low end clients and just adjust her tips.

She really is not bringing home 185 in tips. I pay all the bills so she really does not need money, but she should not have to work for $5 an hour.

The real issue is, they put on too large of a server staff. If you have 3-5 servers working and each only has $150.00 in sales, you have to cut back on the staff.

You can't just keep throwing them on, saying "they are cheap labor, 2.65 an hour, put 5 of them on".

[J-Dogg]

Man, I wouldnt even bother with that, apply at another restaurant

The thing that bothers me is they are doing it and not telling her. She's worked there all through her first year of school, and she's always been a little suspicious and finally kept track.

They have been doing this for a year. In the summer, it's probably not happening because sales are higher, and she'll make more.

But I'm thinking just stick it out, let them keep doing it and then present them with the sum they owe/the figure they added. Or present it to a lawyer.

If they end up terminating her for it, happy to file a whistle blower suit against them following.

[CMPD213]

I totally missed the part about them claiming she's making more than she is... I think your post above is the right approach.

Still have her try to talk to the employer about cutting back on girls though, no need to be running that many girls with $150 sales

[Kratos]

Another story from the relationship saga
You are incorrect J-Dogg
There is a tip credit against minimum wage in your state
http://www.paywizard.org/main/Minimu...ageTIPRecevers

Maybe try dating girls who don't carry food for a living if you want her to make more.

[J-Dogg]

Another story from the relationship saga
You are incorrect J-Dogg
There is a tip credit against minimum wage in your state
http://www.paywizard.org/main/Minimu...ageTIPRecevers

Maybe try dating girls who don't carry food for a living if you want her to make more.

Thanks for your help sweet heart, but your link states the federal law, min wage being 6.65.

If you scroll down to the Michigan table, it will show you Wage+Tips has to = $7.40hr

I'm sure my looser 22 year old girl friend who is in school, working part time as a server appreciates your help too. After all, most 22 year old kids are expected to be banking 50k+ a year while in school.

[Kratos]

Thanks for your help sweet heart, but your link states the federal law, min wage being 6.65.

If you scroll down to the Michigan table, it will show you Wage+Tips has to = $7.40hr

I'm sure my looser 22 year old girl friend who is in school, working part time as a server appreciates your help too. After all, most 22 year old kids are expected to be banking 50k+ a year while in school.

did you try adding the two numbers in the table?
maybe your gf can help you...do they teach math at make-up school?

[J-Dogg]

did you try adding the two numbers in the table?
maybe your gf can help you...do they teach math at make-up school?

I'm not going to be so quick as to put my foot in my mouth here but:

Michigan*
Basic combined Cash & Tip Minimum Wage
per hour $7.40

Maximum Tip Credit
against Minimum Wage
per hour $4.75

Minimum Cash Wage
per hour $2.65

Are you saying 4.75+2.65 does not = 7.40?

I'm not sure if your beef is with me, or if you just don't like 22 year old girl servers?

If you read this from the state of michigan web page:

http://www.michigan.gov/documents/ci...6_173***_7.pdf

You'll see:

STATE MINIMUM HOURLY WAGE RATE:
Beginning July 1, 2008, $7.40 per hour

The Michigan Minimum Wage Law covers tipped employees age 16 and over. All employers in Michigan must pay tipped employees at least $2.65 per hour WHEN tips are received, combined with the employee's hourly rate, equal the required minimum hourly wage rate listed above. A written tip statement signed by the employee AND dated before the date the paycheck was received must be maintained by the employer for each pay period that tips are reported.

[spywizard]

so.. the outcome will be they will cut her a check for let say $100 and then cut her hours to nothing, then black ball her in a very small community??

King Obama will take care of her, you just wait and see..


just a thought

[J-Dogg]

so.. the outcome will be they will cut her a check for let say $100 and then cut her hours to nothing, then black ball her in a very small community??

King Obama will take care of her, you just wait and see..


just a thought

It's not a big deal if they cut her hours, there is always the whistle blower act if they do that.

It's not like she needs the money, but they are doctoring her pay to save them from paying a minimum wage.

It's really an easy fix for them. If you are generating 1,000 in dining room sales a night, and your servers are averaging 150 in sales a night over a 6 hour period.....you cut down on your server staff so their tippable income exceeds minimum wage.

[NVR2BIG1]

Why doesn't she just sit down with the boss and ask him to explain her pay?

[J-Dogg]

Why doesn't she just sit down with the boss and ask him to explain her pay?

That's what I told her originally, but we don't know how long they have been fudging her claimed tips.

I told her to see if it happens again next week, and to document everything.

From there, it's up to her what to do now that we are clear on the law.

I'll probably setup a consultation with my attorney to get his opinion on the matter, and maybe have him just draft a letter to the corporate office on the matter.

[Kratos]

I read too quick, you are right. They do owe her the money.

What I take offense to is your so gung ho about being litigious, not your gf.

Since when did it become the American dream to sue someone, rather than work for a living?

You're talking about keeping records and seeing lawyers, when it's most likely a book keeping error.

She needs to go to her boss, say her tips don't match whats on her check. Give them the chance to correct the problem...if they don't then move to the next step.

It's just crazy to me you'd see a lawyer first before letting them correct the problem.

[J-Dogg]

I read too quick, you are right. They do owe her the money.

What I take offense to is your so gung ho about being litigious, not your gf.

Since when did it become the American dream to sue someone, rather than work for a living?

You're talking about keeping records and seeing lawyers, when it's most likely a book keeping error.

She needs to go to her boss, say her tips don't match whats on her check. Give them the chance to correct the problem...if they don't then move to the next step.

It's just crazy to me you'd see a lawyer first before letting them correct the problem.

I don't think it's a simple mistake:

They are adjusting her tips to put her wage to exactly minimum wage. The numbers are calculated, not mistaken.

I told her to wait, to see if it happens again, to be sure. She has suspected it for awhile, but never kept track until now.

I am the one looking into it before, because I do feel it's part of my responsibility to look out for her and take her side in situations like this. She's a really humble, quite sweet girl. She's upset about it, but she's so passive and unfamiliar with labor laws, she did not know what they were until I looked into it.

[Kratos]

it's still your obligation to inform them it's happening no matter how many times

could be their book-keeper is an f-up that never looks at the sheets

you won't get anything above what she's owed unless they ment to do it...which you can't prove.

So just let them fix it.