HR MANAGEMENT ISSUES 8.2 Stephen was hired as a busser by the Sportsman's Fishing Club. This private club served its members lunch and dinner, as well as alcoholic beverages. Stephen's duties were to clear tables, replenish water glasses, and reset tables for the servers when members finished their meals. Stephen's employer paid a wage rate below the minimum wage because they used the tip credit portion of the FLSA minimum wage law. Before being hired, Stephen read the tip-pooling policy in place at the club, signed a document stating that he understood it, and voluntarily agreed to participate in it. The policy stated that "All food and beverage tips are to be combined at the end of each meal period and then distributed, with bussers receiv- ing 15 percent of all tip income." John Granberry, an attorney, was a club member and a guest who enjoyed dining in Stephen's assigned section be- cause Stephen was attentive and quick to respond to every member's needs. Mr. Granberry tipped well, and the dining room staff was aware that Mr. Granberry always requested to be seated in Stephen's section. One day, after Mr. Granberry had finished his meal and had added a generous tip to his member charge slip, he stopped Stephen in the club lobby and gave him a $20 bill, with the words, "This is just for you. Keep up the good work." A club bartender observed the exchange. Stephen did not place Mr. Granberry's tip into the tip pool. When confront- ed by his supervisor, Stephen stated that Mr. Granberry's $20 tip was clearly meant for him alone. Stephen's supervi- sor demanded that Stephen contribute the tip to the pool, but Stephen refused. Case Study Questions 1. Do you think Stephen is obligated to place Mr. Granberry's tip into the tip pool? 2. If Stephen continues to refuse to relinquish the tip, how would his employer determine what steps, if any, it could legally take to resolve this issue? 3. Do you feel it would be fair if Stephen was allowed to voluntarily withdraw from the tip pool arrangement and still maintain his current employment? Why?
