California Codes

Cal. Labor Code § 350 (2026)

Gratuities

✓ current as of May 2026
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As used in this article, unless the context indicates otherwise:

(a)“Employer” means every person engaged in any business or enterprise in this state that has one or more persons in service under any appointment, contract of hire, or apprenticeship, express or implied, oral or written, irrespective of whether the person is the owner of the business or is operating on a concessionaire or other basis.

(b)“Employee” means every person, including minors and persons who are not citizens or nationals of the United States, rendering actual service in any business for an employer, whether gratuitously or for wages or pay, whether the wages or pay are measured by the standard of time, piece, task, commission, or other method of calculation, and whether the service is rendered on a commission, concessionaire, or other basis.

(c)“Employing” includes hiring, or in any way contracting for, the services of an employee.

(d)“Agent” means every person other than the employer having the authority to hire or discharge any employee or supervise, direct, or control the acts of employees.

(e)“Gratuity” includes any tip, gratuity, money, or part thereof that has been paid or given to or left for an employee by a patron of a business over and above the actual amount due the business for services rendered or for goods, food, drink, or articles sold or served to the patron. Any amounts paid directly by a patron to a dancer employed by an employer subject to Industrial Welfare Commission Order No. 5 or 10 shall be deemed a gratuity.

(f)“Business” means any business establishment or enterprise, regardless of where conducted.

Notes of Decisions
Cited in 9 cases (2 in the last 5 years), 1954–2024 · leading case: Louis v. McCormick & Schmick Restaurant Corp., 460 F. Supp. 2d 1153 (C.D. Cal. 2006).
Louis v. McCormick & Schmick Restaurant Corp., 460 F. Supp. 2d 1153 (C.D. Cal. 2006). · cites it 2× “2d 771 (quoting Cal. Labor Code § 350 ). An agent is a " 'person other than the employer having the authority to hire or discharge any employee or supervise, direct, or control the acts of employees.”
Grodensky v. Artichoke Joe's Casino, 171 Cal. App. 4th 1399 (Cal. Ct. App. 2009). · cites it 3× “Moreover, Labor Code section 350, subdivision (e) defines a "`[g]ratuity'" for purposes of the statute as something that "has been paid or given to or left for an employee by a patron of a business over and above the actual amount due the business for services rendered or for…”
Lu v. Hawaiian Gardens Casino, Inc., 170 Cal. App. 4th 466 (Cal. Ct. App. 2009). · cites it 3× “(Lab. Code, § 350, subd. (e).) The Labor Code defines a "gratuity" to "include[] any tip, gratuity, money, or part thereof that has been paid or given to or left for an employee by a patron of a business over and above the actual amount due the business for services rendered or…”
GMRI, Inc. v. Cal. Dep't of Tax & Fee Admin., 230 Cal. Rptr. 3d 183 (Cal. Ct. App. 2018). “arty gratuity is not "part of the sale" under section 6012 because the Labor Code defines "gratuity" to "include [ ] any tip, gratuity, money, or part thereof that has been paid or given to or left for an employee by a patron of a business over and above the actual amount due…”
Bonetti v. Double Play Tavern, 274 P.2d 751 (Cal. Ct. App. 1954). “2d 729 ]), and while we agree with defendant’s argument that in order to have a relationship of master and servant there must be a right to direct and control the operation, we cannot agree that there is no evidence of that right in this case.”
Eye v. Kafer, Inc., 202 Cal. App. 2d 449 (Cal. Ct. App. 1962). “2d 751 ] and California Labor Code section 350 to the effect that it is not necessary that an employee receive monetary compensation.”
GMRI, Inc. v. CA Dept. of Tax & Fee Admin., No. C081471 (Cal. Ct. App. Mar. 9, 2018). “e party gratuity is not “part of the sale” under section 6012 because the Labor Code defines “gratuity” to “include[] any tip, gratuity, money, or part thereof that has been paid or given to or left for an employee by a patron of a business over and above the actual amount due…”
Chirar v. Hilton Worldwide LLC, No. 4:14-cv-01523 (N.D. Cal. Aug. 8, 2023). “10 California Labor Code section 350(e) defines “gratuity” to include “any tip, gratuity, 11 money, or part thereof that has been paid or given to or left for an employee by a patron of a 12 business over and above the actual amount due the business for services rendered or for…”
Chapdelaine v. Gold Club-SF, LLC, No. 3:24-cv-04304 (N.D. Cal. Sept. 12, 2024). “Code § 201 and 203; (8) tip pool conversion pursuant to 21 Cal. Lab. Code §§ 350 , 351, 353; (9) failure to provide accurate, itemized wage statements 22 pursuant to Cal.”
Cal. Labor Code § 350(e): 1 case
Chirar v. Hilton Worldwide LLC, No. 4:14-cv-01523 (N.D. Cal. Aug. 8, 2023). “10 California Labor Code section 350(e) defines “gratuity” to include “any tip, gratuity, 11 money, or part thereof that has been paid or given to or left for an employee by a patron of a 12 business over and above the actual amount due the business for services rendered or for…”
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