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by gamblor956 2806 days ago
What you've described is a state crime, a federal crime, and a violation of several different state and federal labor laws. Easily a dime worth of prison time, plus criminal fines, plus civil penalties, plus having to pay out the stolen tips to your employees with treble damages for the intentional tort you've comitted.

Not really worth it. I'm not saying it doesn't happen, but the calculus is so bad that it's extremely rare to happen at scale. Especially if there's a digital trail run by a third party...

3 comments

It happens all the time. Connie Schultz won a Pulitzer for writing about this, among other things: https://www.pulitzer.org/winners/connie-schultz

I can understand why you might think it never happens if you are completely ignorant of the facts on the ground but nevertheless familiar with the criminal and civil sanctions involved. It's about lack of enforcement.

I see a short article about a few dinner parties this author attended wherein the owners were keeping the tip. Am I missing the real data here? Is the real story somewhere else? That's a far cry from "this happens _all_ the time."
Weird how the proof that owners are pocketing credit card tips is a story about someone stealing cash from the tip jar.
It has been years since I read her series of articles on the topic of tipping, although I remember it being influential at the time. It's possible I linked to the wrong thing, but in my defense I didn't realize that my post would be required to rise to the level of mathematical proof. Ahem.
data not being the plural of anecodte and all and Not the exact issue but: https://www.huffingtonpost.com/entry/restaurant-chains-hit-w...

https://www.phillyemploymentlawyer.com/wage-theft-epidemic-r...

https://www.epi.org/publication/employers-steal-billions-fro...

https://www.restaurant-hospitality.com/legal/la-restaurant-p...

https://www.eater.com/2018/9/25/17886990/how-restaurants-ste...

Obviously, none of these are scientific studies but I don't know if there are any done in the industry.

What I'm trying to point out is: Wage theft of all types happens all the time and I've known people too poor to risk losing their job who suffered under this issue. I'm sure it doesn't happen often -at scale-, in chain restaurants with big corporate backing but in an industry where most close after their first year and the workers are frequently undocumented or transient. It happens.

When the employers multiply these consequences by the (extremely low) probability of a legal claim, they may just decide that it's worth it to pocket the tips...