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The Owner Of A Restaurant I Work At Refunded My Tip To A Customer, Is This Correct?

Location: Tennessee

I work part time serving at a restaurant and we do an auto gratuity of parties of 6 or more. I had a 9 top that tipped me extra on top of the auto grat which equaled a $450 tip. I put it in the system as soon as I got it.

That person came back to the restaurant the next day asking for a refund of the extra tip because he didn’t realize there was an auto grat. So, the owner went in to the system and just refunded the tip from my tips. When I asked about it, he claimed that since it was within 24 hours it hadn’t posted to payroll yet so it was like I just never received that tip to begin with.

When I got my paycheck, I saw in the system that my total earnings included the extra tip, but the money I received excluded the tip. Which made me curious because he said it wasn’t pushed to payroll due to the 24 hour thing? I was always told that any refunds should be a restaurant expense and that they are not allowed to go in to a servers tips and refund them directly.

When I started questioning him about it, he puts a very long chat gpt answer of how he is not responsible of paying tip refunds due to certain laws and blah blah blah. I don’t want to file a lawsuit over this or anything, but the owner is just shady and honestly should not be running a restaurant with how he does things. I’m just curious what the actual laws are regarding this?

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The Owner Of A Restaurant I Work At Refunded My Tip To A Customer, Is This Correct?

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