Coming soon: new rules regarding tips and gratuities

Starting June 10, 2016, new rules around the handling of tips and other gratuities in the workplace will come into force. Examples of tips and other gratuities include: money given to an employee by a customer for a service in the form of cash, credit card or other electronic payment, or gratuity charges that customers are required to pay for service.

  • Employers will be allowed to withhold their employees’ tips and other gratuities if they are required by law, court order, or if they’re redistributing the tips amongst staff as part of a tip pool.
  • Employers will also be allowed a share of the tip pool if they are owners or part-owners of the business and spend most of their time doing the same work as the employees who earn tips, or employees in other businesses that would normally get tips.
  • Deductions from tips will not be allowed for things like spillage, breakage, etc.

To help protect their rights, students should track the tips they receive and how much they pay into tip pools.