Callahan v. Employment Division

Claimant seeks review of an Employment Appeals Board (EAB) order affirming the referee’s decision that restaurant “tips” are not wages for the purpose of calculating unemployment benefits. We affirm.1

Claimant was employed as a waiter from August 8, 1982, through July 14, 1984. He was paid $3.10 per hour and was given meals valued for accounting and tax purposes at $1.50 each. He also received tips in three different ways: (1) cash tips left on the table or paid directly to him by customers; (2) tips charged on credit cards and paid to him in cash by the employer at the end of his shift; and…