Tips Belong to the Worker: Who is a “manager?”

January 16, 2023 - Tip-pooling, Wage Theft

Under Oregon wage law, and under Federal Wage Law, tips belong to the worker. Managers cannot participate in a tip pool or tip sharing program. Who qualifies as a manager?

Managers are defined as: 1) Any employee whose primary duty is managing the enterprise or manage a department within the business; 2)who customarily and regularly directs the work of at least two or more employees, and 3) who as the authority to hire and fire OR whose suggestions and recommendations as to hiring and firing are given particular weight.

Employers like to mis-label “managers” as something else to illegally allow those managers to participate in tip pools. But, job titles are not always accurate. Any employee who plays a role in management and directs the work of others and has input on hiring and firing can be a “manager” even if, technically, they are your co-worker. Once that “manager” participates in a tip pool, the tip pool is illegal, and you are entitled to recover your contributions.

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