Wages deducted from server despite a lack of tip: Employment lawyer discusses on 640 Toronto

Interview Summary

Some businesses do not always tip their employees and ensure the extra income earned from clientele remains with employers. While tipping is not an obligation for customers, some servers seem to be obligated to “tip” the kitchen despite not earning tips from paying clients. Is this practice legal? What can servers do to protect their rights and wages?

Teilen Celentano, a Toronto employment lawyer and Associate at Samfiru Tumarkin LLP, joined Kelly Cutrara on 640 Toronto to discuss an employee’s rights to tips and wage deductions.

Interview Notes

• Legality of practice in restaurants: Celentano noted that this practice is not allowed. “The Working for Workers Act stated that employers could only withhold or make deductions to tips if those tips were being redistributed to other employees. They cannot make deductions if a table refuses to tip,” Celentano explained.
• Server options and next steps: For employees who have had their wages unfairly deducted, Celentano urged them to speak to the Ministry of Labour, or seek additional legal advice. “They can also speak to an employment lawyer to determine if their rights are being protected.”
• Reprisals from employer: Celentano explained that while employees can and should seek help from the Ministry of Labour regarding unfair wage deductions, employers can’t retaliate. “Companies are prevented from retaliating against you,” said Celentano. “They can’t cut hours, they can’t cut shifts and if they do it can be considered not only a reprisal but a constructive dismissal.”

Related Resources

For further insights and discussions related to employee rights, explore the following resources:

• Unpaid wages in the restaurant industry