So many people have linked all the links in other comments but here is one since you don't want to read thru those https://www.dol.gov/agencies/whd/flsa/tips

Regardless, still very very very illegal for owners to keep tips. They could take the tip option away if they truly want to, but instead the owner is lining their pockets with money intended for staff.

Somewhat true. Say I had a really gnarly week serving to the point I made $5/hr. Legally, my job has to pay me minimum wage. So they bump it up, tax it. On the flip side, say I made $50/hr the next week but most of it was credit card tips. Those tips would be in my next check(at most, not all restaurants) and those tips would be taxed. That helps the IRS keep track of money industry people make, that way someone can't say "oh look, I only made x amount this year, I deserve extra tax refunds."

It is highly encouraged in most restaurants because of that to also report your cash tips and not get the IRS up your booty

Yes, they legally cannot collect tips while being manager. If they are part time manager, part time bartender/whatever they can when clocked in as NOT manager

Thank you for that!

Agreed, managers are not allowed tips unless clocked in as bartender/server/etc and owners are never ever allowed tips. I have been in the industry for 10 years and seen restaurants go down for this

It literally is, can get shut down real fast if enough people complain

I have a Batgirl and super Mary (instead of Mario) costume if you could use it