An employer cannot demand, request or accept from any wait staff employee or service employee any payment or deduction from a tip or service charge given to such employee or employer by a patron. (M.G.L.c. 149, s. 152A(b))
An employer cannot cause, require or permit any wait staff employee or service employee to participate in a tip pool through which such employee remits any wage, tip or service charge, or any portion thereof, for distribution to any person who is not a wait staff employee or service employee. An employer may administer a valid tip pool. (M.G.L.c. 149, s. 152A(c))
If an employer submits a bill or charge to a patron that imposes a service charge or tip, the total proceeds of that service charge or tip shall be remitted only to the wait staff employees or service employees in proportion to the service provided by those employees. (M.G.L.c. 149, s. 152A(d))
Any service charge or tip remitted by a patron to an employer shall be paid to the wait staff employee or service employee by the end of the same business day, and in no case later than the time set forth for timely payment of wages under M.G.L.c. 149, s. 148. (M.G.L.c. 149, s. 152A(e)) (M.G.L.c. 149, s. 148)
An employer who violates this statute must make restitution for any tips wrongfully retained, together with interest at the rate of 12 per cent per year. (M.G.L.c. 149, s. 152A(f))
Under M.G.L.c. 149, s. 148A, an employer cannot discharge, penalize or in any other manner discriminate against any employee because the employee has complained about what the employee perceived to be violations of the statute's tip pooling provisions. Smith v. Winter Place LLC, 447 Mass. 363 (2006)
This statute is enforced by the Office of the Massachusetts Attorney General. Employees whose rights under this statute have been violated can file an online complaint, choosing as the reasons for filing the complaint as "Tips" and/or "Retaliation," and then receive from the Attorney General a "private right of action" letter, allowing the employee so aggrieved who prevails in court to be awarded treble damages, reasonable attorneys' fees and the cost of litigation. An employee must bring such an action within 3 years of any violation. (M.G.L.c. 149, s. 152A(f)) (M.G.L.c. 149, s. 150)