8 Alaska Admin. Code § 15.907

Current through October 17, 2024

Section 8 AAC 15.907 - Employee tips

(a) Except as provided in this section, an employer may not handle or take possession or control of an employee's tips.

(b) An employer may handle an employee's tips only for the purpose of

(1) delivering the cash amount of a tip to the employee when a customer provides for a tip on a credit card charge slip;

(2) redistributing tips to service employees under a tip pooling arrangement; an employer shall provide written notice to all service employees of the tip pooling arrangement; any change to a tip pooling arrangement must be provided in writing on or before the payday before the payday on which the change becomes effective; a tip pooling arrangement may not be retroactive; or

(3) redistributing an employee's accumulated tips to the employee on the next regularly scheduled pay day only if a daily accounting of the employee's tips is provided in writing to the employee each day that the tips are proivided by a customer.

(c) If an employer must pay a credit card company a fee based on a percentage of a customer's bill, an employer may reduce the amount of a credit card tip by a percentage not greater than the percentage charged by the credit card company for its fee.

(d) For the purposes of this section,

(1) "service employee"

(A) means an employee whose primary duty is to deliver or assist in the delivery of services to a customer who, including a host, hostess, order-taker, server, busser, dishwasher, or cook;

(B) does not include an employee whose primary duty is managerial or administrative

(2) "tip pooling arrangement" means an agreement under which a portion of an employee's tips is collected for distribution among service employees;

(3) "tips" means an amount of cash, or an amount designated as a "tip" by a credit card customer on a credit card charge slip/that is determined, and freely given, by a customer in recognition of an employee's service to that customer; "(8) does not include a compulsory charge that is part of the employer's gross receipts, such as a service charge of 15 percent of a customer's bill;

8 AAC 15.907

Eff. 4/7/96, Register 138; am 6/29/2018, Register 226, July 2018; am 10/27/2021, Register 240, January 2022

Authority:AS 23.05.060

AS 23.10.085