Which statement about gratuities (tips) is correct under California law?
Explanation
Labor Code §351 makes a gratuity the sole property of the employee or employees to whom it is paid, and forbids the employer to take, collect, or deduct any part of it. (c) is the federal tip credit, allowed under the FLSA but not in California - a California employer owes the full state minimum wage under §1197 and the tips on top. (a) is the credit-card processing fee deduction, expressly barred by §351, which requires payment of the full tip by the next regular payday. (d) is the manager's cut; agents and supervisors with authority to hire or fire may not share in a tip pool, although a pool among employees who contribute to the service is lawful.
Law Reference: Labor Code §§351, 1197; DLSEThis topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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