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Restaurant Reporter Legal Commentary and Resources for the Restaurant Industry

Tag Archives: Garnishment

Beware: Payroll Companies May Mishandle Garnishments of Tipped Employees

Posted in Employment & Immigration

Tips cannot be garnished or calculated as part of earnings for garnishment purposes unless the employer has had control over those tips (e.g. tip sharing, service charges etc.) Many employers are not aware of this restriction and erroneously include tips in calculating earnings when processing garnishment orders. Unfortunately, many payroll vendors also are not aware… Continue Reading