I worked at Sultan Restaurant in San Francisco (Owner:Iqbal Hansia). The deal was 900 per month in check + tips. The owner('s wife; family owned restaurant) clearly mentioned that we would get all the tips. I wasn't surprised (given the fact they were Indian) when I was given only $25 when the actual tip was $300+. Like SIS says, it still wasn't a bad deal if I would just get paid. And now I am tired of going there over and over again. So I am going to go to the state labor department and seek their opinion in the matter. Lets see if what they have to say is applicable in my case. But it looks like small claims court is my best option. Houston_kancho, can you please tell me the payment method of your friend? I mean, was it cash or personal check or smth else. Also, if I go to court, I am going to need a lawyer. I don't know how much that is going to cost me.
Also, I think 1099 applies to people like bartenders who are usually paid 2-3 dollars an hour but get to keep all of the tip. In that case, there is a contract signed by both parties before the person starts to work. In my case, I signed no contract. Why would I want to go and sign one now after the termination of my employment (or 9 weeks after the termination of my employment.) I think they just want to scare me. They must have thought using big words like IRS and taxes if going to scare me and I would forget about the money. I am going to get that sonofabitch.