My Employer works in her business as an employee(receives an hourly wage). She requires the employees that are working to split tips with her. Example: her and I are the only ones working that day. She cooks, I do 90% of the other cafe duties. There is $50 in tips, I have to give her $25. Can she legally do this?
No, from the information you provided this appears to be an illegal tip splitting arrangement. Since you are the direct service employee you cannot be required to split your tips.
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