A short video by Donna Genie explaining Department of Labor rules on business owners accepting customer tips. She states that owners generally may not accept tips because tips are intended to supplement employee wages; an exception exists if the owner also works as an employee providing direct services, but tips may only be accepted for those direct services and owners of businesses with no employees cannot collect tips.
Hey, just wanted to pop out for a second because I'm getting a question a good bit lately, and I think everybody needs to know the answer to this. I'm getting a question from studio owners about tips for the owner of the business. Many companies don't really follow this policy, but it's a Department of labor policy, and it's had some big rulings lately in restaurants specifically, so it could cause you some problems. Owners of businesses are not allowed to accept tips. Now, the rules are that tips were supposed to supplement wages, so that's why the owners are not allowed to have it. Now, it does say the only exception is if the owner is also an employee providing direct services to customers. So that sounds good, right? However, they can only accept tips for the service they directly provide. And if you don't have any employees, then you can't collect tips. So.
