Recovering Stolen Tips in Texas
My employer is taking my tips — here's what Texas law says and what to do next.
Statute: Tex. Lab. Code § 61.014
Deadline: 6 days
Penalty: Employer may be liable for the unpaid wages plus reasonable attorney fees and court costs. The Texas Workforce Commission may also assess administrative penalties
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 Texas differs from federal law
Texas provides limited state-level protections for tip and wage theft beyond federal law:
- Texas Payday Law (Tex. Labor Code Ch. 61): Requires employers to pay employees all wages owed on regularly scheduled paydays. Employees can file wage claims with the Texas Workforce Commission (TWC) if wages, including tips, are withheld.
- TWC wage claim process: The TWC investigates wage claims and can order employers to pay owed wages. Claims must be filed within 180 days of the date wages were due. The TWC can assess penalties against employers who fail to pay.
- Federal FLSA governs tips: Texas follows federal tip credit rules — employers can pay tipped employees $2.13/hr if tips bring total compensation to at least $7.25/hr. Texas has no additional state restrictions on tip pooling beyond federal law.
- Limited state remedies: Unlike states with stronger wage theft laws (e.g., California, New York), Texas does not provide for treble damages or criminal penalties for wage theft. Remedies are generally limited to recovery of unpaid wages through the TWC or civil court.
- No local wage ordinances: Texas preempts cities from enacting their own wage theft or minimum wage ordinances, so state and federal law are the only applicable standards.
Additional steps in Texas
File a wage claim with the Texas Workforce Commission (TWC) at twc.texas.gov or call (800) 832-9243. Claims must be filed within 180 days. You can also file a federal FLSA complaint with the U.S. Department of Labor at (866) 487-9243.
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 Texas, 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 Texas.