Tip Pooling

Combining tips across staff and redistributing them by a defined formula.

Tip pooling collects tips into a shared pot and redistributes them, commonly by hours worked or by weighted points across roles. Who may participate is regulated: rules differ depending on whether the employer takes a tip credit, and managers and supervisors generally cannot share in a pool at all. Because the federal position has changed more than once and states layer their own rules on top, treat any pooling arrangement as something to confirm with counsel rather than copy from another restaurant.

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