[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR531.52]

[Page 172]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 531_WAGE PAYMENTS UNDER THE FAIR LABOR STANDARDS ACT OF 1938--Table 
of Contents
 
                        Subpart C_Interpretations
 
Sec. 531.52  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. In the absence of an agreement to the 
contrary between the recipient and a third party, a tip becomes the 
property of the person in recognition of whose service it is presented 
by the customer. Only tips actually received by an employee as money 
belonging to him which he may use as he chooses free of any control by 
the employer, may be counted in determining whether he is a ``tipped 
employee'' within the meaning of the Act and in applying the provisions 
of section 3(m) which govern wage credits for tips.