Advice needed for my students

[garyahouse]

Totally off topic: need some advice.

A local business let several of my 13 year old students volunteer blowing up balloons and handing out flyers to support "Family Day" at a Pizza shop. They earned a free pizza. However, several kids were given gratuities by thankful parents. The new boss was OK with this. However, I'm concerned because the boss wants them to come back for 2 hours every Saturday. What should be his policy about letting my kids accept gratuities (tips) in the future?

1. These kids received tips in a restaurant. The fed considers this income. Could this become a legal problem... for the boss or the kids?

2. Workers in the restaurant who normally get these tips... did not: Could arguments start up between employees and my kids?

3. What if one of my kids gets hurt (God forbid). If they receive weekly compensation , are they not considered employees? Is there a legal risk for a naive employer?

4. Should this employer ask his insurance company about this? Or should he ask somebody else?

5. Would it be better to tell the kids to place all tips in the tip box just like the other employees and leave it for them since the kids are indeed volunteers working for job experience and a free lunch?

6. I'm worried that allowing the kids to accept tips could cause problems that nobody is considering. The boss asked me to look into it since he's new at this.

Just thought I'd throw this out there for some feedback. I know there's a lot of experience and common sense on this forum.

Gary

darksider #44

 

[Full House]

Just my 2 cents worth, I believe regulations and fear of lawsuits will ruin volunteerism and in our country! Hell, cities have been shutting down kids' lemonade stands.

Sorry , just had to rant.

As for the tips, a suggestion, if the other employees pool their tips, then any tips collected by your group should go in also. If the employees wish to share, great. However your group doesn't depend on tips as part of their pay. I am assuming that your group is doing "community service" for school. A great project which teaches firsthand.

Again, just my 2 cents, and thanks for being involved.

 

[MEM]

Discuss it with the kids.

Have them agree to pool tips and reach a consensus on donating the funds to a favorite charity .......food kitchen, homeless shelter (critters and/or people), public library.....

 

[madmike2]

Discuss it with the kids.

Have them agree to pool tips and reach a consensus on donating the funds to a favorite charity .......food kitchen, homeless shelter (critters and/or people), public library.....

Yep! Or give half to the employees who actually serve the customers and half to a charity.

My employer's policy is that those in my position WILL NOT accept gratuities. Period! It's in our employee handbook.

We are a service company and those, like me, are usually the employees that customers see face to face. We're simply part of a team and our payroll compensation is enough.

IMO, one of the purposes of volunteer work is not for the financial remuneration but to learn giving of one's self for a cause or support.

They could thank any patrons who wish to give and direct them to give tips to those who are serving them.

 

[SacramentoMike]

As usual, I agree. With no one.

I have worked for tips in restaurants and bars, and naturally, they were an important part of my income. (Important, and standard in that business). What these kids are doing in their two-hours doesn't sound like it interferes with that at all. They're doing jobs that are not part of what the restaurant staff does to earn their tips, unless I'm wrong. Blowing up balloons and handing out flyers sounds like extra work they're doing. If someone offers them a tip for doing that, it should go to them. If they decide to pool tips, the pool should be divided up among the kids in this group who worked that day, not restaurant wait staff or a charity, IMHO. Any kid choosing to donate his or her "take" to a charity is certainly free to do it, but a mandated "donation" is not a donation--it's a tax. Or something. It's not a donation, which is a gift, and freely given. Making them donate tips is just too damned PC for my taste. (Any "income" a 13-y.o. takes in from this little source would be far below any threshold mandated for tax reporting, too, btw.)

To the OP: I'd also hate to see any kind of pressure from the school or restaurant management about what to do with any tips, pooled or not. A couple slices of pizza really doesn't seem like any too much "pay" for two hours of any kind of work.

 

[Bustanut joker]

Well said Mike.. The kids earned those tips.

I'm assuming it was under the $600.00 limit so It doesn't have to be reported... IIRC

 

[Patriot]

Discuss it with the kids.

Have them agree to pool tips and reach a consensus on donating the funds to a favorite charity .......food kitchen, homeless shelter (critters and/or people), public library.....

+1

as I see it, tips given to them are for the good attitude and service they provided

this, or pooling the tips for them to keep is all fine...make the decision a teaching tool after discussion, pondering, and maybe a vote

 

[Geezer]

I agree with those who say that the kids should not be required to add their tips to the pool shared by the regular employees. I'd ask them to refuse the tip and tell the customer that they are volunteers and don't expect to be paid. If it was a club or something like a scout troop then I'd allow the kids to take the tips and require they give all money to the club treasury.

 

[garyahouse]

Appreciate your input about the kids. I'm leaning toward allowing them to pool the tips to split among themselves, but that's up to the owner. However, I am concerned about any liabilities to the employer. He asked me about it as he's new to all this. He's from Russia, and doesn't understand all the rules of compensation and liability. He wants to do what's right. I don't know about all these things either, but since two heads are better than one, I thought I'd run it by you guys. First off, I've notified the principal that he wants to make this an ongoing thing. Got that end covered. Next, I'm concerned that the IRS, workman's comp, and the insurance company agree that these kids are volunteers. My worry is that someone might not agree that they are volunteers because they do receive a certain amount of compensation: not much, granted, but it is money

Gary

darksider #44

 

[rickcorwn]

I think you're getting into a big can of worms. Federal Gvmt. is the least of your worries I'd start here Division of Regulation Then continue my reading with a good Google search.

 

[ER RN]

#5 The value of the experience out weighs any tips they might earn. To give freely of ones self is character building which lasts a life time.....tips not so much.

 

[bramfrank]

Chill out.

The parents who tip the kids are giving their money TO THE KIDS. If the business expects the tips to be pooled, then they should be shared with the kids who did the work by which they were collected on an equal basis. If you expect the kids to work on a regular basis, PAY THEM - you don;t state that this is charity work - they're working to support a promotion for a commercial activity at a for-profit business.

Since the kids don't get payroll checks and the tips will be distributed in cash (besides, just how much money are you talking about? $25 a kid maybe . . . on a good day) what the heck are you worrying about? Do you really think the IRS will come in and haul the kids off to jail for tax evasion if they even figured it out?

Do YOUR kids declare babysitting revenue? What about allowance paid for chores?

If you expect the kids to show up every week in return for a could of slices of pizza, you aren't going to get many kids after a while - if you force the kids to donate the tips to charity, they won't even show up next week. They're working? Pay them a formal hourly wage and let them decide if they buy a pizza with the money. Make it a job. Teach them a proper life lesson and hand them money in return for the labours - $10 an hour had better not be enough to break the bank - and paying it in cash (i.e. under the table, the way they may well be paying their delivery driver or dishwasher) wouldn't kill the owner either.

What they do with the tip money is THEIR business. If THEY decide to give it to charity of their free will, then it reflects on the charitable nature of their upbringing - forcing them to part with the money will likely reduce their propensity to be generous in the future.

If you weanted to get technical, they should be receiving tax receipts for the value of the Pizza they're eating, since it is the remuneration for their work.

 

[bramfrank]

Gary. I understand your position, however if you aren't the boss, I suggest butting out, unless you are his counsel, in which case this is not the place to be doing your research.

 

[Bounce]

Gratuities are taxable. Community service isn't meant to be compensated. All tips should be put into the pot for the employees to divide up. They are either doing community service or are working for pay/tips (and should be taxed). You should explain to them they didn't sign up for a job and so can't expect pay.

 

[Larry33319]

If they are doing Community service as part of their credits toward their graduation then I would select a charity and put out a can marked for that charity. Collecting tips while doing community service work toward graduation is wrong IMHO. Teaching them about charity and giving back to the community is a valuable life lesson as well.

 

[phroenips]

I also agree that tips should not be allowed to be accepted for community service/volunteer work. I don't even like the idea of pooling the tips to give to a charity, because it will be next to impossible to find a charity that all the students can support. Then of course, there's the possibility that the kids may start to think that getting paid to volunteer their time is normal, and to be expected. A bad precedent in my opinion.

 

[garyahouse]

Gary. I understand your position, however if you aren't the boss, I suggest butting out, unless you are his counsel, in which case this is not the place to be doing your research.

Thank you for your brief words.. However, I'm fine. I encouraged the kids to volunteer, and I will continue to do so as they've earned this man's respect. As others come forward, I will instruct them to talk to the owner and that's as far as my involvement will go. I encouraged the owner to research his liability with these volunteers and to rethink allowing them to receive tips. That is his responsibility. I told him I'd ask around. For the record, I disagree with you here. I'm glad I asked this forum. As it turns out, this was indeed a good place to do a little research. There's a lot of experience here and I'm satisfied with the many responses I've received. I'll pass them along to the owner.

Gary

darksider #44

 

[HotRodZilla]

Hmmmmmm...I agree with Sac-Mike. The owner just needs to make sure volunteers are covered by his insurance...Which they should be without his checking.

Taxes and feds?? For a couple dollars in tips? Please!

 

[garyahouse]

Spoke to the principal today. He doesn't want anything to do with it. He said something about fearing liability with this thing. So there ya go. I'm a little surprised, but that's how the cookie crumbles as they say. I've not told the kids that the boss would like to have them back yet. Therefore, I'll be instructing the kids that already worked for the man that they're on their own and will need to contact the owner on their own with out any further involvement from me. They've earned his respect and if he'd like to ask them to come back, that's between them. For what it's worth, I'm proud of the kids. They're young and shy, but they sure did a good job. It's amazing what kids can do if given half a chance. Thanks again, guys, for all your input. Collectively, we've got a lot of experience and common sense. I'll be recommending that the owner do his research and that if it were me, I'd let the kids keep their tips and share amongst themselves if THEY decide to. Here's something pretty cool that came out of all this. Any kid who does well in my class can get lunch there for half price. I can use it as a reward with the boss's blessings. How about that? Even I'd VOLUNTEER for that idea!!!

Gary

darksider #44