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Court: Nightclub Employees Should Keep Tips

JefferyTurner, Flickr

MINNEAPOLIS (AP) – Hundreds of nightclub employees are entitled to damages after the Minnesota Supreme Court ruled their employer can’t use their tips to make up cash register shortages.

More than 750 Drink and Spin employees sued nightclub owner Uptown Drink and related companies in 2010, alleging they were violating the Minnesota Fair Standards Act by using their tips to make up for customers that walked out without paying or did not sign credit card receipts.

Uptown Drink said employees voluntarily paid the shortages. But, employees testified at trial that failing to make the payments could get them fired.

The Supreme Court’s decision sends the case back to Hennepin County District Court to determine damages for the servers, bartenders and security guards.

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