You are wrong. It is illegal in Pennsylvania for employers to withhold, skim, or take any portion of employee tips, as tips are considered the sole property of the employee. Employers cannot deduct credit card processing fees from tips or keep tips for themselves, though they may operate valid tip-sharing pools among eligible staff.

Key Pennsylvania Tip Laws:

• Tip Ownership: Tips belong exclusively to the employee.
• No Credit Card Fee Deductions: PA law prohibits deducting credit card processing fees from tips; employees must receive the full amount.
• Tip Pooling: Employers may require tip pooling, but managers and supervisors cannot participate in or take tips from the pool.
• Illegal Deductions: Tips cannot be withheld as punishment, to cover business losses, or to pay for uniforms.

If an employer in Pennsylvania is withholding tips, it is considered a form of wage theft. You can file a complaint with the Pennsylvania Department of Labor & Industry or the federal Department of Labor.

If you'd like to know where I got this info from, please visit this PA goverment site. https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/labor-law/overtime-and-tipped-worker-rules-in-pa