Minnesota Administrative Rules

3315.0211 TIPS AND GRATUITIES AS WAGES.

Subpart 1.

Accounted for to the employer.

Tips and gratuities are accounted for to the employer in various manners or forms including when they are:

A.

added to the customer's bill by the employer;

B.

added to the bill by a customer using credit for the purchase;

C.

disbursed by the employer from a tip pool; or

D.

reported to the employer in compliance with the Internal Revenue Code of 1986.

Subp. 2.

Paid to an employee by a customer.

Tips and gratuities are considered paid to an employee by a customer if they are:

A.

received directly from the customer;

B.

distributed from a tip pool, whether controlled by the employer or employees; or

C.

received as part of a plan or system under which the person initially receiving them, whether directly from the customer or from a tip pool, distributes a portion of the tips to other employees.

Under items A to C the tips are considered as being paid by the customer to the person ultimately receiving them.

Statutory Authority:

MS s 268.021

History:

13 SR 1057

Published Electronically:

July 31, 2007