Follow the law on employee tips

Several years ago, it came to my attention that some employers in town were withholding tips intended for employees and keeping them. I am told that it is happening again. This is contrary to Alaska state law.

State regulation 8 AAC 15.907 specifically states that owners and managers are forbidden to take tips that were intended to go to the employee who provides a service directly to the customer.

The regulation says: “Except as provided in this section, an employer may not handle or take possession or control of an employee’s tips.”

Employees who have been mistreated in this way can contact the Alaska Department of Labor and Workforce Development to file a complaint. Employers can face serious penalties for keeping tips intended for their employees. Retribution against an employee for filing a complaint is proscribed by law and can also result in serious consequences for an employer.

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Frank Wasmer