Who is impacted?
Tens of thousands of service industry workers in Alberta—including servers, bartenders, kitchen staff, and hotel employees—rely on tips as a significant portion of their income. These workers are essential to the hospitality sector, often providing exceptional service and contributing to the overall customer experience. However, without adequate legal protections, many face the risk of employers withholding or misappropriating their earned tips. Unlike other provinces that have enacted legislation to protect workers' rights to their tips, Alberta remains without such safeguards, leaving workers vulnerable to exploitation. This is not just about protecting front-of-house employees—it’s also about ensuring fairness for all workers, including kitchen staff, who also contribute to the overall customer experience.

 
What is at stake?
Tips are not merely a bonus; they constitute a substantial part of workers' wages. Without legal protections, employers can withhold or divert these funds, depriving workers of their rightful earnings. Customers also have the right to know that their tips are going directly to the individuals who served them or contributed to their experience, including kitchen staff. In provinces like Ontario, British Columbia, and Nova Scotia, legislation ensures that tips are the property of the employee and cannot be withheld by employers. Ontario’s Employment Standards Act prohibits employers from withholding tips or other gratuities unless specifically authorized, ensuring that tips go directly to the workers (ontario.ca). Similarly, British Columbia’s Employment Standards Act mandates that tips cannot be withheld or taken by employers unless they perform similar work to the employees receiving them (www2.gov.bc.ca). Nova Scotia’s Labour Standards Code makes it clear that tips are the property of employees and outlines penalties for any employer who violates this rule (nslegislature.ca). These legislative measures not only protect workers but also promote transparency and fairness in the distribution of tips.

 
Why is now the time to act?
Alberta stands out as an anomaly among Canadian provinces by lacking legislation that protects workers' rights to their tips. In many cases across the province, employers, managers, or even business owners take a share of the tips that customers give directly to employees. This practice undermines workers' income and creates an environment of mistrust, where employees are left uncertain about whether their tips will go to them or be misappropriated. In some instances, tips are taken from employees and given directly to the house, or pooled in ways that benefit management rather than the workers who earned them. This is not only unfair but also allows businesses to take advantage of workers, especially those who rely on tips to make up a significant portion of their earnings.

Other provinces, like Ontario, British Columbia, and Nova Scotia, have taken steps to ensure that tips are the property of the employees who earn them. Ontario’s Employment Standards Act prohibits employers from withholding tips or other gratuities unless specifically authorized, ensuring that tips go directly to the workers (ontario.ca). British Columbia’s Employment Standards Act mandates that tips cannot be withheld or taken by employers unless they perform similar work to the employees receiving them (www2.gov.bc.ca). Nova Scotia’s Labour Standards Code makes it clear that tips are the property of employees and outlines penalties for any employer who violates this rule (nslegislature.ca). These provinces have already addressed the need for fair treatment of employees when it comes to tips—Alberta is lagging behind. It’s time for change.

 
Call to Action:
We, the undersigned, call upon the Alberta Legislature to introduce and pass legislation that:

• Defines Tips as Employee Property: Clearly states that tips and gratuities are the property of the employee to whom or for whom they are given.
• Prohibits Employer Withholding: Prohibits employers from withholding, deducting, or requiring employees to return or give their tips to the employer, except as authorized by law.
• Ensures Fair Distribution: Allows employees who receive tips to decide, collectively, if they want to establish a tip policy or create a tip pool to ensure fairness in distribution, including for kitchen staff. Any tip policy or pool must be approved by all employees involved in the distribution process.
• Requires Transparency: Requires employers to inform employees of tip policies at the time of hire and maintain records of tips received and disbursed.
• Mandates Timely Payment: Requires that tips be paid out to employees within a maximum of 14 days (two weeks) after they are earned.

By enacting these measures, Alberta can ensure that workers' tips remain their property, promote fairness and transparency in the workplace, and align with the standards set by other provinces.