Recovering Stolen Tips in Maryland
My employer is taking my tips — here's what Maryland law says and what to do next.
Statute: Md. Code, Lab. & Empl. § 3-505
Deadline: 14 days
Penalty: Employer may be liable for up to treble (3x) the amount of unpaid wages, plus reasonable counsel fees and court costs
What is recovering stolen tips?
Wage theft is when your employer fails to pay you what you are legally owed. It is the most common labor violation in the United States — the Economic Policy Institute estimates that workers lose more than $50 billion per year to wage theft, exceeding all robberies, burglaries, and auto thefts combined.
Common forms of wage theft include: not paying overtime, paying below minimum wage, stealing tips, forcing off-the-clock work, misclassifying employees as independent contractors, and making illegal deductions from paychecks. The FLSA and state labor laws prohibit all of these practices.
What to Do If Your Employer Is Stealing Your Wages or Tips
Step 1: Keep your own records. Track hours worked, tips received, and pay received. Use a notebook, spreadsheet, or app — any contemporaneous record is valuable evidence.
Step 2: Compare your records against your pay stubs. Look for discrepancies: missing hours, lower tip amounts than you earned, unauthorized deductions, or overtime not paid at 1.5x.
Step 3: Raise the issue with your employer in writing. Email or text creates a documented record. State the specific discrepancy and the amount you believe you are owed.
Step 4: If your employer does not correct the issue, file a complaint with the DOL Wage and Hour Division at 1-866-487-9243 or online at dol.gov. You can also file with your state's labor department, which may have stronger protections.
Step 5: Consult an employment attorney. Many wage theft attorneys work on contingency (no upfront cost). Under the FLSA, you can recover back wages, an equal amount in liquidated damages (double damages), and attorney's fees.
How Maryland differs from federal law
Maryland has strong protections against wage theft and tip stealing:
- Tips belong to employees: Under Maryland law, employers and managers cannot take any portion of tips earned by employees. Tip pooling is allowed only among employees who customarily receive tips
- Tipped minimum wage: Maryland's tipped minimum wage is $3.63/hr. Employers must ensure tipped employees earn at least $15.00/hr (Maryland's full minimum wage) when tips are included — if not, the employer must make up the difference
- Maryland Wage Payment and Collection Law (MD Code, Labor & Employment § 3-501 et seq.): Employers who fail to pay wages (including tips) can face treble damages (3x the unpaid amount) in a private lawsuit
- Maryland Wage and Hour Law: Provides state-level enforcement of minimum wage and overtime requirements, including for tipped employees
- AG enforcement: The Maryland Attorney General and the Division of Labor and Industry investigate wage theft complaints. Criminal prosecution is available for willful violations
- Enhanced penalties: Maryland increased penalties for wage theft, including potential criminal liability for repeat offenders
Additional steps in Maryland
File a wage complaint with the Maryland Division of Labor and Industry, Employment Standards Service at (410) 767-2357 or online at dllr.state.md.us. Report wage theft to the Maryland AG at (410) 528-8662. Workers can also bring a private lawsuit with potential treble damages under the Wage Payment and Collection Law.
What you should NOT do
Don't rely on your employer's time records alone. Employers sometimes alter timekeeping records. Your personal records are admissible evidence and can contradict employer records.
Don't wait too long to file. The FLSA has a 2-year statute of limitations (3 years for willful violations). State deadlines vary. File as soon as you identify a problem.
Don't assume small amounts aren't worth pursuing. Wage theft often accumulates over months or years. A few dollars per shift adds up to thousands. Class action lawsuits are also common for systemic violations.
Don't fear retaliation. It is illegal for your employer to fire, demote, or punish you for filing a wage complaint. If they do, you have an additional retaliation claim.
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Generate your unpaid wages →This page is general legal information for Maryland, not legal advice for your specific situation. Laws change, and how a statute applies depends on facts we don't know. For advice on your matter, consult a licensed attorney in Maryland.