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Class Action by Card Dealers against Casino Employer for Tip Pooling Rejected

Avidor v. Sutter’s Place, Inc. (App. 6 Dist. 2013) 151 Cal.Rptr.3d 804, 212 Cal.App.4th 1439

Under Casino employer’s tip-pooling arrangement, card dealers were required to contribute a set amount per hour into a tip pool which was distributed to nondealer employees at the casino.

The Court of Appeal noted that, such tip pooling arrangement did not violate statute prohibiting employers from taking any part of gratuity that was given to an employee by a patron, even though casino patrons gave tips directly to the dealers.

Pointers: Validating tip-pooling is not restricted to restaurants anymore.

Note: Statute prohibiting collecting employees’ gratuities would be violated if management collected any part of a tip pool.