Solving your employment Problems

What are the rules about tip pooling?

On Behalf of | Oct 17, 2024 | Employment law |

Many employees who get tips will collect them directly during the duration of their shift. The servers may be assigned to a specific table or section in a restaurant, for example. Customers will leave tips on the table or on a credit card, and the server who waited on the table just gathers them and keeps 100% of those tips for themselves.

Conversely, some companies will use tip pools. With this system, all of the tips are combined. Say that there are eight waiters or waitresses working at the same time, for example. They put all of their tips into a communal pool and then divide them up evenly into eight portions.

Managers can’t be included

One key rule about tip pools is that only the staff can be included. Managers and supervisors cannot. Business owners cannot. The employees who earn the tips are the only ones who are supposed to participate in the pool. If an owner or manager cut themselves in, even if they helped the waitstaff during the night, it may be an example of wage theft.

Tip pools can be mandatory

Another thing to remember is that this isn’t always a voluntary process in Ohio. An employer does have the right to create a mandatory tip pool. As noted above, the employer can’t include themselves. They also have to tell employees in advance that they will be using the tip pool, so it can’t come as a surprise.

Resolving a dispute

You may find yourself in a dispute with your employer, perhaps over alleged wage theft or unfair tip payments. If so, it’s very important to understand the laws and all the legal options you have moving forward.