Tipping in Los Angeles
A tip is the employee's property by statute, and it is on top of a full minimum wage, not instead of one.
Under Labor Code section 351 a gratuity is the sole property of the employee or employees to whom it is given. The employer may not take a share of it.
California does not allow a tip credit. Unlike under federal rules, an employer here cannot count your tip towards its obligation to pay the minimum wage, which is why the expected percentage is a choice rather than a subsidy.
A tip left on a card must be paid to the employee no later than the next regular payday after the card payment was authorised, with no deduction for the card processing fee.
A mandatory service charge is not automatically a gratuity. Whether it counts as one turns on whether the specific facts show the customer perceived and intended it as one, so a service charge on the bill is not proof the server was tipped.
- California Department of Industrial Relations: tips and gratuities · checked 2026-09-03
