The Minnesota Supreme Court recently sided with the bar staff who were forced to pay cash shortages out of their tips. The full opinion is linked below, as well as newspaper coverage. The
Court held that the mandatory deductions violated Minnesota wage and hour laws,
which most, if not all states have in place.
Aside from the legal implications, the media coverage caused substantial harm to the business, which has since filed for bankruptcy. On a practical level, employee morale may be significantly decreased if such a policy is in place in your establishment, and turnover may increase resulting in major costs. If cash shortages are a significant and recurring problem with a certain employee, it is better to document the issues and confront the employee.
http://case.lawmemo.com/mn/karl.pdf
http://www.startribune.com/local/minneapolis/219646251.html
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