Add Comment Question: I work at a franchise restaurant and everytime there has been a minimum wage increase the restaurant owners have announced that our tipout will be increasing on the same day that the wage hike goes into effect. The last wage increase our tipout went up so much that not only did I not get to keep any of the wage increase it cost me an extra 40 -60$ per week to cover the tipout. The upcoming minimum wage hike that starts Oct. 1st we all received notice that our tipout is going up again. So yet again I actually will end up making less $ instead of more. Is this legal, can my employer use $ from increasing tipout to cover the cost of the minimum wage hike? Answer: My name is David Vaughan and I'm an employment lawyer with Samfiru Tumarkin. A change like this to your compensation (i.e. increasing the tipout) could constitute a constructive dismissal if it results in a decrease to your annual compensation and could entitle you to severance pay if it is significant enough (10-15% reduction in compensation). Your Comment * Your Email * Your Name * Your City Note, your name, city and email is not displayed on the website. It is used to notify you that we have approved your comment.