Short answer: Yes. Long answer: It’s complicated.
Eater turned to lawyerDisclaimer: The materials available in this post are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.A: The short answer is yes. Sharing or pooling of tips is allowed under federal law.
That said, there are restrictions about how and with whom tips can be shared that employers must follow in order to not run afoul of any Department of Labor or Fair Labor Standards Act regulations, not to mention laws of the particular state you’re in. State requirements may be more restrictive than those provided on a federal level so you’ll want to seek local counsel before trying to decide whether there’s something amiss about how an employer is handling these issues.
Sharing and pooling are similar, and are essentially treated the same when it comes to determining how they’re to be accomplished.First, If the employer is mandating a pooling or sharing policy, that policy has to be provided to the employee in writing and the employee has to sign off that they’ve read and understood that tips are going to be shared, how they’re going to be allocated, and to whom.
Second, not all employees are allowed to join in the tip pooling or sharing. The only employees who are eligible to take from the pool or share in tips are those who have direct customer contact as a regular part of their duties. That typically includes waitstaff, counter staff, bussers, bartenders, barbacks, food runners, hosts, and dining room captains. Managers and owners are not allowed to participate.
The regulations around pay in the hospitality industry are fairly intricate, and require extremely detailed record and time keeping . To the extent your employer is getting this wrong, assuming malicious intent would be a mistake. Even employers with good intentions trip up from time to time. .Sign up for the newsletter
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