Can My Boss Take My Tips in Georgia?

Get Your Consultation

Can My Boss Take My Tips in Georgia?

person holding cash

In Georgia as in most states, there are state and federal laws regarding your minimum wage. Employees who get tips in Georgia, however, aren’t covered by state laws. These employees are considered exempt from state minimum wage laws. Instead, if you receive tips, you are covered by federal laws that address employee tips.

It does admittedly seem like a convoluted system, and it would be understandable if you were confused about what exactly your rights are within that system. Particularly, you may be wondering if your boss is allowed to take your tips from you.

This blog will address federal laws regarding tips and your employee rights under United States laws. Please read on to learn more. If you suspect your employer has taken your tips unlawfully, do not hesitate to reach out to an Atlanta wage and hour law attorney today. As an employee, you do have legal protections, and we will fight to defend your rights.

Employment and Tips in Georgia: An Overview

The most important rule about tips according to federal law is that your tips belong to you. They do not belong to your employer, hence the answer to the question that opened this blog is (generally speaking) no. Your boss is not allowed to take your tip except in two very specific circumstances:

Tip credit: While not permitting your employer to take your tip out of your hand, federal law lets employers in some states (like Georgia) count your tips toward your minimum wage. The employer is, in effect, counting some of your tips as if your employer had paid you the amount of money in the tip.
Tip pool: According to federal law, as well as according to most states’ laws, your boss is allowed to implement a rule that all employees pay into a tip pool meant to be shared among the employees.

Tip Credits: Minimum Wage Protection

We return now to the topic of tip credits and to the idea presented in the introduction, that you have wage protection regardless of whether you do or do not receive tips. Under federal law and Georgia law, the minimum wage is $7.25 an hour. Note that Georgia’s minimum wage laws don’t apply to tipped employees, but you still have federal minimum wage and are entitled to the full federal minimum wage.

Although some states restrict this, a number including Georgia (as well as federal law) allow your employer to count your tips toward your minimum wage. As described above, this is the tip credit that the law gives your employer. This means that if you earn enough tips to make up the difference, your boss can in fact pay you less than minimum wage.

The tip credit amount permitted under federal law is $5.12 per hour. Consequently, Georgia employers may pay you a minimum wage of $2.13 an hour if you receive tips.

However, if you don’t make enough through tips in a workweek that you earn at least minimum wage between your tips and whatever reduced amount your boss pays you, then your boss is required under law to pay you the difference. Since the federal minimum wage is $7.25, if you don’t earn at least the equivalent of $5.12 per hour in tips, your employer needs to pay you the difference.

Our Philosophy

Our firm hand-selects challenging, complex cases that other attorneys won’t touch so we can deliver the highly-personalized attention your case deserves. From consultation to trial, we advocate for employees’ rights, every step of the way.

Our Principle

We base our practice on the principles of service and care. We take the time to truly know each and every client, and we put all of our energy into obtaining the best outcome possible, time and time again.

Our Definition Of Success

We will prosecute your case to the fullest extent possible. If you’ve been wronged by an employer in Georgia, you can count on Ben Barrett Law to fight for you.

Why Did the FTC Ban Non-Competes?

The FTC (Federal Trade Commission) is a federal agency that prevents fraud and unfair business practices by enforcing consumer protection laws. Most recently, in April of 2024, the FTC voted to ban non-compete agreements. While some may criticize this law,...

Read More

Get Your Consultation

  • This field is for validation purposes and should be left unchanged.
Contact Info
Mon - Fri : 9:00 AM-5:00 PM