Advocates, industry leaders call on Nova Scotia to outlaw 'tip theft'

Advocates, industry leaders call on Nova Scotia to outlaw 'tip theft'

Province is one of few remaining without legislation to stop employers from pocketing gratuities

Advocates and industry groups are calling on the Nova Scotia government to outlaw "tip theft" — the practice of employers pocketing gratuities meant for service industry staff.

While the Restaurant Association of Nova Scotia says the vast majority of local businesses operate fairly, the organization has been pushing for an actual ban for several years.

"We do not condone tip theft," Natasha Chestnut, the association's executive director, told CBC Radio’s Information Morning Nova Scotia.

"We feel quite strongly that tips belong to the employees, and that that's best practice."

Although tips are subject to federal tax regulations, Chestnut said Nova Scotia lacks its own legislation prohibiting employers from taking a portion.

Several Canadian provinces protect service workers from tip theft. Because New Brunswick, Prince Edward Island and Newfoundland and Labrador all have safeguards, Nova Scotia is the only Atlantic province without legislation to protect workers' gratuities.

Labour Minister Nolan Young told reporters Thursday that the province needs to evaluate its options.

“I think it's incredibly important that any changes that would happen have to be done carefully,” said Young.

However, Paul Wozney, NDP critic for ethics and accountability and MLA for Sackville-Cobequid, said that swift action is vital to safeguard the province's 30,000 service industry workers, many of whom rely on tips to make ends meet.

“They are not well-paid, and tips are one of the things that make this work attractive to people and can boost their income,” Wozney said.

“When tips are taken from people, you are eroding people's ability to keep up with the cost of living.”

The NDP introduced a bill to close the loophole based on models that work in other provinces, but the provincial government says it needs more time to study the matter.

“There is a process,” said Young.

More and more places are asking for tips. Hidden cameras reveal who is and isn't getting them

Wozney dismissed the government's call for more studies, saying existing research already shows Nova Scotia lagging behind the rest of Canada. He accused the government of stalling, calling its inaction "deplorable."

Meanwhile, Chestnut wants the restaurant association to help shape any future rules, saying protecting employees is a "positive thing."

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With files from Information Morning