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24.16.1508    TIPS OR GRATUITIES

(1) Tips are the employees to keep and may not be used by the employer to make up any part of the employees wage.

(2) General characteristics of tips. A tip is a sum presented by a customer as a gift or gratuity in recognition of some service performed for him. It is to be distinguished from payment of a charge, if any, made for the service. Whether a tip is to be given, and its amount, are matters determined solely by the customer, and generally he has the right to determine who shall be the recipient of his gratuity.

(3) Payments which constitute tips. In addition to cash sums presented by customers which an employee keeps as his own, tips received by an employee include, amounts paid by bank check or other negotiable instrument payable at par and amounts transferred by the employer to the employee pursuant to directions from credit customers who designate amounts to be added to their bills as tips.

History: 39-3-403, MCA; IMP, 39-3-402, MCA; Eff. 12/31/72.

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