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Elijah O'Reilly

ESD disqualified me for quitting over illegal tip theft - can I appeal?

I just got hit with a disqualification on my ESD unemployment claim because I quit my job at a local steakhouse. The interviewer said quitting was voluntary without good cause, but I left because the owner was skimming 15% off our tips every night! I have text messages from other servers complaining about it too. I tried explaining that Washington has specific laws (RCWs) that make tip theft illegal, but the adjudicator didn't seem to care. Shouldn't illegal behavior by my employer count as good cause to quit? Has anyone successfully appealed something like this? I literally couldn't afford to keep working there when he was stealing from us every shift. The disqualification letter says I have 30 days to appeal, but I'm not sure if I should bother or what evidence I need to provide.

Amara Torres

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Yes, you absolutely have grounds to appeal! RCW 49.46.020 specifically prohibits employers from taking tips from employees. This is considered wage theft and is definitely good cause to quit. When you file your appeal, make sure to: 1. Cite the specific RCW that was violated 2. Gather statements from coworkers who experienced the same issue 3. Include any documentation showing the tip theft (pay stubs, text messages, etc) 4. Explain that you attempted to resolve the issue before quitting The key is showing that this created an intolerable work environment and you had no reasonable alternative but to quit. Appeals can take 6-8 weeks, but continue filing your weekly claims while waiting!

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Thank you for this!! Do you know if I need to get my coworkers to sign official statements or are screenshots of our group chat complaining about it enough? I'm worried some won't want to get involved since they still work there.

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the same exact thing happnd to me last year at a bar in belltown!!! manager was taking 10% of tips for "kitchen staff" but we found out he was keeping it. i quit and got denied benefits too but i didnt know i could appeal it so i just gave up. fight this!!!

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Mason Kaczka

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This is actually super common in Seattle restaurants. My cousins ex worked at a place on Capitol Hill where the owners were taking 20% of credit card tips claiming it was for "processing fees" which is total BS because those fees are nowhere near that high!!! The whole industry is corrupt!

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Sophia Russo

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I successfully appealed a similar situation in 2025. The key factor was proving that I had attempted to resolve the issue before quitting. Did you confront your employer about the tip theft or report it to L&I before quitting? If not, ESD might argue you didn't exhaust all reasonable alternatives. For your appeal, prepare a clear timeline showing: - When the tip theft started - Any attempts to address it with management - Any deterioration in your financial situation as a result - The specific date you quit and why that day The hearing will be conducted by an Administrative Law Judge who has more authority to consider labor law violations than the initial adjudicator. Be prepared for technical questions about how tips were distributed and collected.

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This is really helpful. I did text my manager about it twice before quitting and have those messages saved. I also have a picture of our tip sheet from one night showing what we earned vs what we received after the owner's "house fee" was taken out. Do you think that's enough?

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Evelyn Xu

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Wait they can deny you for quitting even when your boss is breaking the law??? Thats so messed up!!!! The whole system is rigged against workers!!!! 😡😡😡

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Amara Torres

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They're not supposed to deny in cases of illegal employer behavior, but the initial adjudicators often miss these details or don't fully investigate. That's why the appeal process exists - to give claimants another chance with a more thorough review by an Administrative Law Judge who has more legal training.

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Dominic Green

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Try using Claimyr to get through to ESD directly before your appeal. I was in a similar situation (construction company not paying overtime) and got denied initially. Spent DAYS trying to call ESD with no luck. Someone here recommended Claimyr (claimyr.com) and they got me connected to an ESD rep in like 20 minutes. The agent actually helped me understand exactly what documentation I needed for my appeal and gave me pointers specific to my case. There's a video demo here: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 It's worth getting direct guidance from ESD before your hearing so you know exactly what to present.

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I've never heard of this service before! I'll check it out. I've tried calling ESD 5 times already and either get disconnected or end up on hold for hours until they close for the day. Thanks for the recommendation.

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Hannah Flores

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my friend had somethin like this happen and when she went to the appeal hearing, the judge asked her if she tried to file a complaint with L&I first? i think they expect u to try to fix the problem before u can just quit. did u tell ur boss it was illegal or report him anywhere????

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I texted my manager about it being illegal twice, and I have those saved. I didn't file a formal L&I complaint though... I was afraid of retaliation while I was still working there. Do you think that will hurt my case?

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Sophia Russo

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To respond to your follow-up question: Yes, the text messages to your manager and the tip sheet showing the deductions are excellent evidence. Make copies of everything. One more important tip: During your appeal hearing, be very specific about the financial impact. For example: "I was losing approximately $X per week due to the illegal tip theft, which meant I couldn't pay my rent/utilities/etc." Connecting the illegal activity to actual hardship strengthens your case. Also, the fact that you didn't file an L&I complaint isn't necessarily disqualifying. Many workers fear retaliation (which is also illegal, but common). Just be prepared to explain that fear in your hearing.

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Thank you! I just requested my appeal online and downloaded the evidence form. I'm going to submit the texts, tip sheets, and a statement explaining that I was losing about $200/week because of this, which was making it impossible to cover my rent. Really appreciate all the advice here!

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not to be contrarion but are you SURE the owner was taking tips illegaly? lot of restaurants have tip sharing that is legal where tips are distributed among staff including kitchen which is legal under WA tip pooling laws. if it was a legal tip pool and you quit over that, youre appeal will probaly be denied again. just saying to make sure you have your facts straight

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Yes, 100% sure. We already had a tip-out system for kitchen and support staff. This was an additional 15% the owner took directly for himself that was labeled "house fee" on our checkout sheets. He wasn't working in the restaurant - just taking a cut of our tips. That's definitely illegal.

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Mason Kaczka

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I went through an appeal hearing last month for a completely different reason, but I learned a lot about the process. The most important thing is to BE PREPARED! The judge will give you and ESD each time to present your case. Have your evidence organized and practice explaining your side clearly. My hearing was over the phone and lasted about 45 minutes. The judge was actually pretty nice and let me fully explain my situation. The ESD representative mostly just read from their original decision document and didn't seem that prepared to counter my new evidence. I won my appeal, and I think you have a strong case too! Good luck!

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That's encouraging to hear! I was worried the judge would automatically side with ESD. I'll definitely prepare and practice explaining my situation clearly. Thanks for sharing your experience!

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