On Monday, Dec. 7, the Ontario legislature passed a bill making it illegal for restaurant employers to take a share of servers’ tips.

The Protecting Employees’ Tips Act bans employers from holding back tips their employees have received, unless they do so to redistribute them as part of a tip pooling agreement.

The only exception to the law is in the case of tips paid by credit card. In that case, it is technically permissible to hold back the amount of the fee charged by the credit card company on the tip.

Learn more about the modification to the bill that Restaurants Canada negotiated for members, and how the bill will impact you, here.


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