Tips, Tip Pooling, and Tip Credits - What Employees Need to Know

Employees in the service industry have to follow a rulethe month. In this case the tips are divided equally
called tip pooling and this applies to waitress, waiters,among all the employees.
and bartenders. Most people who come to theThe most important rule regarding tips is that
restaurants, hotels and bars usually tip the serviceemployees have a right to them and not the employer.
employees. Most satisfied customers even have rulesThe employees in the service industry need not give
like they would tip a certain amount of the bill. Thistheir tips that they earn to their employers. There is a
amount can be included within the bill or they maytip pooling agreement by default wherein the money
leave the cash in the folder.received from tips is distributed among employees, and
Did you ever know that there are some legal rulesthe employer does not have any rights to claim it.
with regard to tips and excess allowance that aHowever, this rule is not as easily applied as you think it
person receives on the job? Employers in somemight be. For instance, a particular customer pays the
States are allowed to pay you lower wages becausebill by a credit card and includes some amount as tip.
of the tips you get on the job. This is because you willThe credit bills are given to the bank and are pooled
be making additional money by way of tips. You mayinto the general funds. There is no indication of the tip
also have to pool in the tips you receive along withamount to the finance department of the employer
other employees and then share the tips at the end ofactually. You will need to make a note of it.