Tipped Employees in Massachusetts

In Massachusetts, employers of employees who regularly receive tips in excess of $20 per month (the regulations provide a $30 limit) pay tipped employees $2.63 per hour and credit the difference between the $2.63 and the applicable minimum wage rate toward the requirement, unless the amount of tips actually received by the employee is less than the amount credited by the employer.

Effective September 9, 2004, employers cannot demand, request or accept from any wait staff employee, service employee, or service bartender any payment or deduction from a tip or service charge given to the employee by a patron. Employers cannot retain or distribute any tip or service charge given directly to the employer. Employers cannot cause, require, or permit any wait staff employee, service employee, or service bartender to participate in a tip pool through which the employee remits any (or any portion of) wage, tip, or service charge, for distribution to any person who is not a wait staff employee, service employee, or service bartender. An employer is permitted to administer a valid tip pool and may keep a record of the amounts received for bookkeeping or tax reporting purposes. Employers may impose on a patron any house or administrative fee in addition to, or instead of a service charge or tip, if the employer provides a designation or written description of the house or administrative fee, which informs the patron that fee imposed does not represent a tip or service charge for wait staff or service employees or service bartenders. If an employer submits a bill, invoice, or charge to a patron or other person that imposes a service charge or tip, the total proceeds of that service charge or tip should be remitted only to wait staff or service employees or service bartenders in proportion to the services provided. Lastly, any service charge or tip remitted by a patron or other person to an employer should be paid to the wait staff or service employee or service bartender by the end of the same business day, and in no case any later than the time set for timely payment of wages under Massachusetts law.