New rules for employees’ tips take effect Friday

CTV Kitchener: New rules for worker tips Starting Friday, it will be illegal for employers to take a share of tips earmarked for their workers. Allison Tanner has details.

Tipping may be governed by a set of unwritten rules, but what happens to the tips after they are collected is about to become law.

Starting Friday, it will be illegal for many employers in Ontario to take their employees’ tips.

The law makes exceptions for “tip pooling”-type situations where tips are combined and then distributed among multiple employees, and for cases where employers have court orders allowing them to take tips.

Business owners will still be able to take part in tip pools, but only if they are doing the same work as the employees who would normally receive tips.

In addition, the new law will make it illegal for employers to deduct tips from employees for damaged items or other losses.

According to the province, an estimated 65,000 Ontarians receive tips and gratuities in the food and beverage sector alone.