Massachusetts Courts Have Spoken: Guidance Regarding No-Tipping Policies

The change in tip jars quickly adds up, and can especially add up in Massachusetts, where the failure to lawfully distribute tips among wait staff employees may subject a restaurant to mandatory triple damages. The Massachusetts Tips Act (Tips Act), with its complexities and nuances, has vexed restaurants throughout the Commonwealth since its inception in 2004. Whether restaurants and franchises permit wait staff employees to accept tips or not, there are important aspects of the Tips Act employers should be aware of.

 The Tips Act prohibits employers from retaining, demanding, requesting, or accepting any tip or service charge given by a patron that is intended for a wait staff employee.  A “tip” is defined as any gift or gratuity “given as an acknowledgement of any service performed” by a wait staff employee. A “wait staff employee” is any employee in a restaurant responsible for directly serving beverages or food to patrons or for clearing patrons’ tables, and who…