If you work in a restaurant, hotel, or service industry, your tips are your earned wages — and California just made it much harder for employers to steal them.
Under Senate Bill 648, the California Labor Commissioner now has direct authority to investigate tip theft and fine employers who unlawfully withhold or redirect gratuities. This is a major win for workers. Previously, pursuing a tip theft claim often meant navigating a more complex legal process. Now, the Labor Commissioner can act swiftly and levy significant penalties against employers who violate California’s tip laws.
What Counts as Tip Theft?
California law is clear: tips belong to employees, not employers. Tip theft can include employers keeping a portion of tips, managers or supervisors taking from tip pools, and illegal tip-pooling arrangements that funnel gratuities to non-tipped staff.
Why This Matters for You
Service industry workers — servers, bartenders, hotel staff, delivery workers — are among the most vulnerable to wage theft. SB 648 sends a strong message: California will hold employers accountable.
If you believe your employer has been stealing your tips, you have rights, and you have options. Talk to a California Employment Attorney at Lavi & Ebrahimian, we fight for employees across California. Our Beverly Hills employment attorneys have extensive experience handling wage theft, tip theft, and labor law violations.
We’re here to help you understand your rights and recover what you’re owed. Call us today at (866) 470-2189 for a free consultation.