Distribute service charges fairly across hospitality staff
For educational purposes. Check local labor laws for tip pooling rules.
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Tip splitting (or tip pooling) is legal in most states for positions that customarily receive tips. Back-of-house staff (kitchen, bussers, barbacks) can receive a portion of tips from front-of-house staff. Employers cannot participate in tip pools.
Common split: servers keep 70-80% of their tips, contribute 20-30% to the pool. Pool is divided among back-of-house based on hours worked. State laws vary — some cap the pool percentage or require specific positions to be included.
If employers claim a tip credit (paying below minimum wage with tips), they generally cannot require tip pooling. The rules around tip credits and pooling are complex and vary by state.