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Content Last Revised: 9/28/67
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CFR  

Code of Federal Regulations Pertaining to ESA

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 531  

Wage Payments Under the Fair Labor Standards Act of 1938

 

 

 

Subpart C  

Interpretations

29 CFR 531.52 - General characteristics of ``tips.''

  • Section Number: 531.52
  • Section Name: General characteristics of ``tips.'' 
    A tip is a sum presented by a customer as a gift or gratuity in 
recognition of some service performed for him. It is to be distinguished 
from payment of a charge, if any, made for the service. Whether a tip is 
to be given, and its amount, are matters determined solely by the 
customer, and generally he has the right to determine who shall be the 
recipient of his gratuity. In the absence of an agreement to the 
contrary between the recipient and a third party, a tip becomes the 
property of the person in recognition of whose service it is presented 
by the customer. Only tips actually received by an employee as money 
belonging to him which he may use as he chooses free of any control by 
the employer, may be counted in determining whether he is a ``tipped 
employee'' within the meaning of the Act and in applying the provisions 
of section 3(m) which govern wage credits for tips.
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