Is it legal to hire an employee to work as a bartender receiving tips only?
raelene42654 asked:
I have been told that many bartenders work for tips only, I have a hard time believing this is legal for businesses as they have absolutely no responsibility to pay employer taxes and workers comp. Is there a provision in the Labor Code preventing this type of employement?
I have been told that many bartenders work for tips only, I have a hard time believing this is legal for businesses as they have absolutely no responsibility to pay employer taxes and workers comp. Is there a provision in the Labor Code preventing this type of employement?
Pretty sure this is not legal, I think they have to be paid some sort of base wage regardless. But I really don’t know. One way to find out might be to ask a bartending school about placements, and see. Or call your local wage and labor place as they should be able to shed light on the legality of the issue.
If fhe bartender is under the control and direction of the payer, they are an employee and subject to minimum wage laws.
While they can get a lower wage on the theory they are getting tips, it can’t be zero and they still get a W-2, not a 1099-misc.
YES!!! Only if they are under a contract. Most insurance companies who hire insurance agents work on a commission only basis.
If there is no contract, then they will have to be paid minimum wage.