Kentucky wage and hour laws prohibit an employer from deducting from a bartender’s or server’s credit card tips an amount equal to what the credit card company charges the employer to process their credit card charges. Bartenders and servers at restaurants and bars are routinely paid tips through a customer’s credit card charges. A bartender’s and server’s employer is required to pay a credit card company a small percentage (anywhere from 1% to as high as 3%) of credit card receipts as a processing fee.Kentucky wage and hour laws prohibit an employer from deducting from a bartender or server’s credit card tips the same amount or percentage that the employer has to pay the credit card company as a processing charge. If an employer does so, then the bartender or server may bring a claim against the employer.

If employees are able to prove that an employer violated the above wage and hour laws, then under Kentucky law, that employer must pay to the employees the amount wrongfully withheld from the bartender or server. In addition, if the employee can prove to the satisfaction of the court that the employer knew that withholding these credit card processing fees from the bartender or server’s tips was a violation of Kentucky wage and hour laws, then the court may award the employee double the amount. Finally, if an employee is able to prove that their employer violated Kentucky wage and hour laws, then the employer is also required to pay the legal costs and attorney’s fees the employee(s) incurred in bringing a claim against the employer.

The Shelton Law Group has successfully brought many individual and class action claims against employers who have violated Kentucky’s wage and hour laws. If you believe that your current or former employer has violated Kentucky’s wage and hour laws, then you should contact the Shelton Law Group at (502) 409-6460 or (888) 761-7204, or visit us at www.robsheltonlaw.com.