California — California lawmakers have enacted a new measure aimed at curbing tip theft, strengthening enforcement tools to ensure service workers receive the gratuities intended for them. Senate Bill 648, signed into law in 2025, expands protections for employees who rely on tips as a core part of their income. The change reflects growing concern about tip theft and related wage violations across California’s service industries.
New Law Expands Enforcement Against Tip Theft
Effective January 1, SB 648 authorizes the California Labor Commissioner to take a more active role in addressing tip theft. The law applies to restaurant servers, hotel staff, hairdressers, and other tipped workers throughout the state. Previously, while California law recognized tips as employee property, enforcement options were limited.
Under SB 648, the Labor Commissioner may now investigate complaints, issue citations, and pursue civil actions against employers who withhold or divert gratuities from employees. Lawmakers cited studies showing billions of dollars in annual wage violations, particularly affecting low-wage workers in Los Angeles, San Diego, and the Bay Area.
What SB 648 Means for Worker Rights
SB 648 strengthens existing wage protections and establishes clearer paths to recovery in cases of tip theft. Key provisions include:
- Authority for the Labor Commissioner to issue civil penalties
- A private right of action for affected workers
- Penalties of $250 per violation, or $1,000 for willful misconduct
- Expanded remedies alongside other wage theft claims
These changes are designed to enhance access to enforcement and eliminate barriers faced by workers seeking accountability.
Seeking Legal Help for Wage Violations
Workers who experience wage theft may have legal options under California law. A qualified employment lawyer can help assess claims, explain rights, and pursue recovery through administrative or civil action.
Our team offers free consultations to California workers to review concerns about tip theft and wage theft, and outline the next steps to take. Contact us today to speak with a lawyer about protecting your earnings and enforcing your rights.
