It used to be that restaurants could not require that tips be pooled and distributed between tipped and non-tipped employees (e.g. servers and kitchen staff). Congress has changed that
Employers can now require tip-pooling IF…
- Each participant employee is paid the full minimum wage before tips (that mean no tip credits!) AND
- The employer/manager/supervisor does not receive or keep any portion of the tips.
If you have questions about setting up a tip-pooling policy, reach out to our employment law specialist Shane Swilley at email@example.com