A tipper is an individual who possesses crucial information about a company and shares it with another person for the purpose of making profits through stock trading. However, this practice is prohibited and regarded as dishonest.
A tipper is an individual who possesses confidential or insider knowledge and selectively reveals that information for personal gain or trading purposes. For instance, John, an executive at a pharmaceutical company, informs his friend Tom about a new drug being developed by the company. Tom takes advantage of this information by purchasing stock in the company before the drug is publicly announced, resulting in a profit when the stock price increases. This behaviour is considered illegal and unethical. Another example involves Sarah, an accountant at a company, who shares information about an upcoming merger with her brother before it is made public. Her brother then buys stock in the company, making a profit when the merger is eventually announced and the stock price rises. Similarly, this conduct is both illegal and unethical.
Yes, it is legal to tip below the standard percentage. Tipping is a voluntary act, and there is no legal requirement to tip a specific amount. However, it is customary to tip a certain percentage as a gesture of appreciation for good service.
No, a tip cannot be considered as part of an employee’s wages. Tips are considered additional income and are separate from the wages paid by the employer. Employers are required to pay employees at least the minimum wage, regardless of the tips received.
No, employers cannot keep the tips received by their employees. Tips belong to the employees who receive them, and employers are prohibited from taking any portion of the tips. However, employers may have a valid tip pooling arrangement where tips are shared among employees.
Yes, it is legal for a restaurant to include a mandatory service charge instead of allowing customers to tip. However, it is important for the restaurant to clearly communicate this policy to customers before they order. The service charge should be clearly stated on the menu or bill.
Yes, an employer can require employees to share their tips with non-tipped employees under certain circumstances. This is known as a valid tip pooling arrangement. However, the employer must comply with specific legal requirements, such as ensuring that the employees who participate in the tip pool are customarily and regularly tipped employees.
Yes, tips are considered taxable income. Employees are required to report their tips to their employer, who will then include them in the employee’s taxable wages. It is important for employees to keep accurate records of their tips to ensure proper reporting.
No, an employer cannot deduct credit card processing fees from an employee’s tips. Tips are the property of the employee, and employers are not allowed to make any deductions from them, except for valid tip pooling arrangements or as required by state or federal law.
Yes, an employer can require employees to participate in a tip pool, as long as it meets the legal requirements. The tip pool should only include employees who customarily and regularly receive tips, and the distribution of tips should be fair and reasonable.
Yes, under certain circumstances, an employer can pay tipped employees less than the minimum wage. This is known as a tip credit, where the employer can take a credit for the tips received by the employee towards their minimum wage obligation. However, the employer must ensure that the employee’s total earnings, including tips, meet or exceed the minimum wage.
Yes, an employer can require employees to report all their tips. It is the responsibility of the employee to accurately report their tips to their employer. Failing to report tips can have legal and tax implications for both the employee and the employer.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/tipper/
- Modern Language Association (MLA):Tipper. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/tipper/.
- Chicago Manual of Style (CMS):Tipper. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/tipper/ (accessed: May 09 2024).
- American Psychological Association (APA):Tipper. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/tipper/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts