What's the difference between tip pooling and tip sharing?
Tip pooling is a structured system (roles, formula, timing). Tip sharing is often informal "tip-outs" or voluntary sharing. The risk is higher when it's inconsistent or not documented.
California Tip Law - Tip Sharing Rules for Restaurants
Overview
If you run a restaurant in California, tips aren't "extra money the house can manage." Under California Labor Code S 351, gratuities are the sole property of the employee(s) they're left for - and employers (and their agents) can't take them, deduct them, or use them to offset wages.
That's why tip policies tend to create problems when they're informal, inconsistent, or "handled the way we've always done it." A setup that feels normal - like asking staff to share tips, running a tip pool, paying out credit card tips later, or adding a "service charge" for large parties - can become risky if it crosses the lines California draws.
Here are a few of those lines, in plain terms -
- Tip pools can be mandatory in California, but they must be fair and reasonable and cannot be used to pay the owner, managers, or supervisors (even if they sometimes help on the floor).
- Credit card tips must be paid in full - you generally can't deduct processing fees from employees' gratuities.
- "Service charges" are not automatically "tips." In California, whether a service charge must be treated like a gratuity can depend on the facts (including how guests perceive it).
- Mandatory fees and surcharges also connect to pricing transparency rules. California's SB 478 (and related guidance) focuses on making sure required fees are clearly reflected in advertised/listed prices.
In the next sections, we'll break down tip pools vs. tip sharing, who can and can't participate, how to handle service charges cleanly, and the simple records and routines that keep you compliant without turning every shift into paperwork.
Tips 101 - Under California Tip Law
Before you set up a tip pool or decide how to handle service charges, you need a clean definition of what a "tip" is in California - because tips are treated differently than wages and differently than mandatory fees.
A tip (also called a "gratuity") is money a guest chooses to leave for an employee on top of the amount due for food, drink, or service. The key word is chooses. If the guest can decide the amount (or decide to leave nothing), that's typically a tip. If the charge is required, it usually stops being a tip and starts looking more like a fee the business controls.
Here's what commonly counts as a tip in restaurant operations -
- Cash tips left on the table, handed to an employee, or dropped in a tip jar
- Credit card tips (the tip line on a receipt)
- Digital tips left through an online checkout flow, QR code payment, kiosk, or delivery/takeout platform (when the guest voluntarily adds it)
Here's what commonly does not count as a tip -
- Mandatory service charges (including many "automatic gratuities" added to large parties)
- Required surcharges/fees (example - "operations fee," "wellness fee," "kitchen fee")
Why does this matter? Because under California tip law, tips are generally treated as the employee's property - not a revenue stream the house can reallocate. That also means California restaurants generally can't use tips to meet minimum wage the way some other states do. You pay the required minimum wage first, then tips are on top of that.
Two practical rules to lock in early -
1. Credit card tips should be paid out in full. Don't reduce employee tips to cover card processing costs.
2. Have a clear payout timeline. In practice, many restaurants pay card tips out on the next paycheck (or sooner), but whichever method you use, make it consistent and trackable.
Once you're solid on what is a tip vs. a charge, tip pools and tip sharing get much easier - because you're not accidentally "pooling" something that shouldn't be treated as tips in the first place.
Tip Pooling in California
Tip pooling is legal in California, and for many restaurants it's the simplest way to share tips across the roles that make service happen. The key is that a tip pool can't turn into a "house fund." A tip pool must be built around the idea that tips belong to employees, and the pool is just a structured way to distribute those employee tips among eligible team members.
What a tip pool is (and why owners use it)
A tip pool is a policy that requires (or allows) tipped employees to contribute some or all tips into a shared pool, then redistributes those tips using a clear method (points, percentages, or job-class splits). Restaurants use tip pools to -
- reduce "winner/loser" shifts (busy sections vs. slow sections),
- support roles that directly help the guest experience (bussers, runners, bartenders),
- create a more predictable payout process for credit card tips and digital tips.
Who can be included
In California, tip pools are generally limited to employees who provide direct service to guests or are part of the chain of service. This often includes servers, bartenders, bussers, food runners, and hosts - depending on how your operation runs and how the guest experience is delivered. A practical test - if the guest's service would suffer without that role's contribution, they may be part of the service chain.
Who should not be included
A major risk point is including anyone who functions as the employer's "agent," such as owners, managers, and supervisors. Even if a manager occasionally runs food or covers a table, California guidance warns against letting them receive money from the tip pool. If someone has real authority (like hiring, firing, discipline, or controlling schedules), keep them out of the pool.
Make it fair, consistent, and easy to explain
"Fair and reasonable" isn't a vibe - it's something you can show on paper -
- pick one method (points or percentages),
- define eligible roles and when they're eligible (by shift or by hours),
- explain how you handle non-service time (meetings, side work),
- set a payout cadence (daily cash-out, next-day, or paycheck).
If your team can't quickly explain the tip pool back to you, it's probably too messy - and messy systems are where disputes start.
Tip Sharing vs. Tip Pooling
Tip sharing" and "tip pooling" sound similar, but they cause different problems when they're not clearly defined.
Tip pooling is a structured system. It usually means you have a written policy that says- which roles participate, what tips go into the pool, how the split is calculated (points, percentages, or job classes), and when payouts happen. A tip pool can be required as a condition of the job, as long as it's set up in a way that stays within California's rules (especially around who can receive the money and how the pool is managed).
Tip sharing is often looser. In practice, it can look like "tip-outs" at the end of a shift (server tips out bar, busser, runner), or voluntary sharing between employees. The risk with informal tip sharing is inconsistency - one shift does it, another doesn't; one manager enforces it, another ignores it; one employee feels pressured, another doesn't. That's where arguments start - because the process feels personal, not policy-based.
Here's the most important concept for both systems - customer intent. If a guest clearly leaves a tip for a specific employee (for example, cash handed directly to a server with a "this is for you"), treating that money like "house tips" can create conflict. The safer approach is to define, in writing, what happens with -
- direct tips meant for one person
- tips left in a common tip jar
- tips added on a card or digital checkout
- tips on takeout vs. dine-in
A simple way to keep this clean is to answer these questions in your policy (in plain language) -
1. What tips must be pooled (and which do not)?
2. Which roles are eligible, and why?
3. What formula is used (and can employees see it)?
4. When and how are tips paid out?
5. Who audits the math, and how are corrections handled?
When your team can predict the outcome before the shift ends, your tip process is usually in a safe place- fewer surprises, fewer disputes, and far less risk that a "normal" tip practice turns into a compliance headache.
Managers, Supervisors, and Owners
This is where most tip policies get risky - letting the "wrong" role touch tip money, even by accident.
In California, the basic idea is simple - owners and the employer's "agents" should not take tips. The tricky part is that restaurants use titles differently. One place's "shift lead" is basically a senior cashier; another place's "shift lead" is running the floor, writing schedules, approving comps, and sending people home early. Same title, very different risk.
What roles are usually a problem
Be careful with anyone who can do things like -
- hire, fire, discipline, or evaluate employees
- control schedules, approve timecards, or decide who gets cut
- run the shift as the person "in charge"
- represent the business in a way that gives them real authority over staff
Even if that person also runs food or helps on the line, their authority is what creates the issue, not whether they sometimes do the same work as hourly staff.
The "working manager" trap
Many restaurants have a manager who jumps in to cover gaps. The safest approach is - a manager can help, but they don't get paid out of tips. If you want to reward that manager for stepping in, do it through wages, bonuses, or a separate incentive that is not funded by tips.
How to handle shift leads and supervisors
If you use shift leads, decide what they truly are and write it down -
- If they're a working lead (mostly doing the same job as the team, with limited direction duties), you still need to be cautious and consistent.
- If they're a supervisor/manager in practice (directing the shift, making staffing decisions, enforcing discipline), treat them like management and keep them out of tip distributions.
Practical safeguards that prevent mistakes
1. Create clear job codes in your POS/payroll - Server, Bartender, Runner, Shift Lead, Manager.
2. List tip-pool eligible roles by job code, not by name.
3. Use a written rule for exceptions, like - Managers are not eligible for tips, even when working a service position.
4. Audit tip payouts weekly - if someone with manager duties is receiving pooled money, fix it immediately and document the correction.
Done right, this section is boring - and boring is good. When everyone knows who is eligible and why, you avoid the fastest path to complaints - management took our tips.
Transform The Way You Manage Tips!
Manage and Distribute Tips Seamlessly with Altametrics
Service Charges and Auto-Gratuity
This is the area where restaurants get tripped up the most, because guests and staff often treat a service charge like a tip - even when the law may not.
Tips vs. service charges (the practical difference)
- A tip is optional. The guest decides whether to leave it and how much.
- A service charge is required. It's automatically added by the business (for example. 18& service charge, large party charge, banquet fee, wellness fee, or kitchen surcharge).
That difference matters because a required charge can create two separate risks -
1. Guest expectation risk - If your menu, receipts, or staff language make guests believe a mandatory charge is going to employees as a tip, you can end up with disputes (and potentially legal exposure) over whether that money should have been paid to staff.
2. Payroll and tax handling risk - Service charges are often treated as business revenue first, then wages if you pass them to employees. That usually means a different payroll process than tips.
Auto-gratuity for large parties
Many restaurants use an automatic percentage for large parties because it protects the staff on high-work tables. The key is how you label it and explain it -
- If you call it a gratuity, guests will reasonably assume it's a tip for the service team.
- If you call it a service charge, guests may still assume it goes to staff unless you clearly explain what it is.
A simple, safer approach is to use plain language everywhere (menu + receipt + website) and keep it consistent -
- What the charge is called
- When it applies
- Whether it is distributed to employees (and if so, how)
Pricing transparency also matters
Separate from tip rules, California has tightened expectations around mandatory fees and price transparency. If you add required fees, you should pay close attention to how prices are displayed and communicated so guests aren't surprised at checkout.
If you're using service charges, treat them like a system - not a line item you set and forget. Write it down, train managers on how to explain it, and run a quick monthly audit of menus, receipts, and online ordering screens to make sure the language matches what you actually do.
Credit Card Tips, Tip Timing, and Recordkeeping
Most tip problems don't start with bad intent. They start with messy routines - a rushed closeout, a tip pool that's calculated three different ways, or a credit card tip payout that's "whenever we get to it." The good news is you can prevent most issues with a few simple, repeatable habits.
Credit card tips - pay them in full, and pay them on time
When a guest tips on a credit card, treat that tip as employee money - not a place to recover costs. Don't reduce tip payouts to cover credit card processing fees. Also, set a clear timing rule for when those tips are paid out (for example, paid on the next regular payday). The most important thing is that your practice is consistent, trackable, and aligned with what California requires.
Tip pool timing - pick a cadence and stick to it
If you pay tips out daily, make sure the math is documented each day. If you pay tips out on paychecks, make sure employees can still see the supporting detail (hours, points, roles, and totals) for each pay period. When employees don't understand the calculation, they assume it's wrong - even when it isn't.
The records that keep you safe (and keep payroll clean)
You don't need complex spreadsheets, but you do need proof. At minimum, keep -
- Daily POS closeout reports showing total tips collected (cash + card + digital)
- Tip pool worksheet or report showing the distribution method (points/percentages), eligible roles, and payout amounts
- Time records that match the pool logic (hours worked by job code, not just total hours)
- Manager review sign-off (even a simple checkbox or initials) so someone owns the process
Handling refunds, voids, and chargebacks
Set one written rule for what happens when a credit card tip gets reversed after payout. Many restaurants treat it like any other reconciliation - document the adjustment and handle it through payroll with clear notes. The goal is transparency and a paper trail - not surprises.
A tip process that's clear, repeatable, and documented is easier to run, easier to explain to staff, and much harder to challenge.
A Practical Compliance Checklist
Use this checklist to pressure-test your current tip and service-charge setup. If you can't answer a question in one sentence, that's usually your first fix.
1) Define what counts as a "tip" in your restaurant
- List every place tips show up- cash, tip jar, credit card tip line, online ordering, kiosk/QR tips, delivery platforms.
- Decide what happens to each type (kept by the employee, pooled, or shared) and put it in writing.
- Make sure managers use the same wording when explaining it to staff.
2) Lock down who is eligible for tip pools (by job code, not by name)
- Create a short list of eligible roles (example. servers, bartenders, bussers, runners, hosts).
- Put owners/managers/supervisors in a "not eligible" category - even if they sometimes help on the floor.
- Don't rely on titles alone. If someone has real authority over hiring, firing, discipline, or schedules, treat them like management for tip purposes.
3) Choose one distribution method and keep it consistent
- Pick points, percentages, or hours-based splits.
- Write down the formula and show a simple example payout.
- Decide how you handle side work, meetings, or partial shifts so there are no surprises.
4) Set a clear timing rule for payouts
- Decide whether tips pay out daily or on payroll.
- If you pay out on payroll, make sure employees can still see the detail behind the numbers.
- For credit card tips, don't subtract processing fees and don't let payout timing drift.
5) Service charges and auto-gratuity- make the language match reality
- Audit every menu, receipt, website, and online checkout screen for how charges are described.
- Use plain language that says whether the charge is required and whether any portion goes to employees.
- Watch pricing transparency rules if you add mandatory fees.
6) Keep simple records that prove the math
- Daily POS tip totals + closeout report
- Tip pool calculation report/worksheet
- Hours worked by job code
- Manager sign-off and a correction process (mistakes happen - document the fix)
Make tip compliance easier with Altametrics
If you want tip policies that are easier to run (and easier to defend), tighten the workflow around scheduling, time punches, closeouts, and payroll handoff. Altametrics helps restaurants simplify workforce scheduling and time & attendance so you can standardize daily routines, reduce payroll errors, and stay aligned with wage and scheduling rules. Learn more about Altametrics by clicking "Request a Demo" below.
Accounting payroll
California Tip Law - Tip Sharing Rules for Restaurants
Accounting payroll
7 Simple Steps to Build a Restaurant Budget
Restaurant management
How to Improve Team Communication Between FOH and BOH
Restaurant management
How to Build a Local Restaurant Marketing Plan
Accounting payroll
How to Build a Restaurant Chart of Accounts
Sales forecasting
How to Build Engaging Customer Loyalty Programs for Restaurants
Restaurant management
Restaurant Operations Management Made Simple
Restaurant management
Simple KPIs for Multiple Restaurant Locations
Accounting payroll
How to Track Time Accurately for Hourly Restaurant Staff
Restaurant management
Cost Control Guide for Restaurants
Restaurant management
The Ultimate Restaurant Kitchen Design Plan
Sales forecasting
How to Set Up a Restaurant Gift Card Program
Employee scheduling
Are You Following US Labor Laws in Your Restaurant?
Software integration,restaurant management,sales forecasting
How to Design High End Restaurant Loyalty Programs
Sales forecasting
The Essential Steps Involved in Sales Forecasting for Restaurants
Inventory management
The 6 Types of Inventory Management Reports for Restaurants
Restaurant management
Essential CCP Food Handling Procedures Every Restaurant Must Follow
Employee scheduling
The Complete Guide to Efficient Employee Scheduling for Restaurants
Sales forecasting
The Different Methods of Sales Forecasting for Restaurants
Inventory management
What are the four types of inventory management for restaurants?
Restaurant management
Daily Cash Control Checklist for Restaurant Owners
Inventory management
Restaurant Financial Statements Explained
Restaurant management
How Technology Helps Restaurants Cut Food Waste
Inventory management
Top Inventory Management Strategies for Restaurants
Inventory management
How to Build a Restaurant Inventory Management Process from Scratch
Food safety
Food Safety Practices for Small Restaurants
Restaurant management
The Complete Guide to Restaurant Waste Management for Owners
Employee scheduling
The Complete Guide to Restaurant Employee Benefits
Accounting payroll
5 Signs Your Hotel Needs to Upgrade Its Payment Processing System
Restaurant management
The Ultimate Daily Checklist for Restaurant Owners
Accounting payroll
Are You Over-complicating Your Restaurants Payroll Process?
Inventory management
Is Your Inventory Management Costing You Profits?
Employee scheduling
How Can Smart Scheduling Transform Your Restaurant's Efficiency?
Restaurant management
What Are the Best Email Marketing Campaign Ideas for Restaurants in 2025?
Restaurant management
How Can You Maintain Brand Consistency Across Multiple Franchise Locations?
Employee scheduling
How Can Restaurants Prevent Scheduling Conflicts and Last-Minute Absences?
Restaurant management
What's the Most Efficient Way to Manage Tasks in a Busy Restaurant?
Employee scheduling
What Should You Look for When Interviewing Restaurant Staff?
Restaurant management
What Is a Dram Shop Law and How Does It Affect Your Restaurant?
Restaurant management
What Features Should Every Restaurant Ordering System Have in 2025?
Accounting payroll
What Are the Most Cost-Effective Ways to Reduce Waste in a Restaurant?
Inventory management
Are Your Menu Items Costing You More Than They're Worth?
Accounting payroll
How Do You Handle Overtime and Tip Credit in Restaurant Payroll?
Accounting payroll
Are You Spending Too Much Time on Payroll? Here's How to Fix it
Inventory management
How Can I Implement an Effective Inventory Management System in my Restaurant?
Sales forecasting
What Do Consumer Reports Say About Your Menu?
Inventory management
What Are the Main Inventory Costing Methods for Restaurants?
Restaurant management
How to Streamline Your Restaurants Supply Chain
Restaurant management
How to Optimize Order Fulfillment in Your Restaurant
Employee scheduling
How to Design an Effective Employee Training Program for Restaurants
Restaurant management
9 Essential Workforce Management Tools Every Restaurant Needs
Accounting payroll
How to Read and Use Your Restaurants Profit and Loss Statement
Accounting payroll
How to Organize Your Restaurant's Financial Records Efficiently
Accounting payroll
Restaurant Billing 101 - Simplify Your Finances and Boost Efficiency
Accounting payroll
The Ultimate Guide to Accounts Payable Automation for Restaurant Owners
Accounting payroll
Benefits of Accounts Receivable Automation for Restaurants
Accounting payroll
The Ultimate Guide to Restaurant Accounting
Accounting payroll
Restaurant Bookkeeping 101 - A Beginner's Guide for Restaurant Owners
Accounting payroll
Invoice Management 101 - A Simple Guide for Restaurant Owners
Restaurant management
What Are Par Levels and Why Every Restaurant Owner Should Care
Sales forecasting
Top 5 Consumer Metrics Every Restaurant Should Track
Inventory management
Which Inventory Method is Best for Your Restaurant?
Accounting payroll
Setting Up an Employee Loan Program in Your Restaurant
Employee scheduling
The Ultimate Employee Onboarding Checklist for Restaurant Owners
Accounting payroll
Top 7 Payroll Mistakes Restaurant Owners Should Avoid
Accounting payroll
How to Calculate Food Cost Variance in Your Restaurant
Sales forecasting
A Guide to Understanding Customer Behavior in Restaurants
Restaurant management
Top 10 California Employment Laws Every Restaurant Owner Must Know
Restaurant management
How to Create Custom Recipe Templates for Your Restaurant Kitchen
Restaurant management
5 Practical Strategies to Cut Food Waste in Your Restaurant
Restaurant management
Understanding Restaurant Food Cost Percentage in 2025 - Strategies for Profitability
Inventory management
The Restaurant Owner's Guide to Streamlining Supply Chain Processes
Restaurant management
How to Efficiently Calculate and Manage Labor Cost in Restaurants
Food safety
General Food Safety Guidelines for Restaurants
Inventory management
A Guide for Restaurant Food Suppliers
Employee scheduling
Key Elements of a Successful Restaurant Scheduling System
Restaurant management
How to Reduce Labor Costs in Your Restaurant Without Sacrificing Service
Inventory management
5 Best Practices for Food Inventory Management to Reduce Waste
Employee scheduling
Understanding California Overtime Laws for Restaurants
Employee scheduling
Top Features to Look for in an Electronic Time Clock for Restaurants
Restaurant management
The Best Employee Rewards Programs for Restaurants
Employee scheduling
The Best Time Keeping Methods for Restaurants
Employee scheduling
How a Restaurant Scheduling App Helps You Avoid Common Scheduling Mistakes
Employee scheduling
Features to Look for in a Clock-In Machine for Restaurants
Employee scheduling
How to Improve Time and Attendance Tracking in Your Restaurant
Employee scheduling
How California Work Week Laws Affect Restaurant Scheduling
Accounting payroll
Best Practices for Calculating Payroll Hours in Restaurants
Employee scheduling
How to Prevent Time Theft in Your Restaurant
Restaurant management
How Technology Can Improve Employee Management in Restaurants
Employee scheduling
California Employment Laws Every Hotel Owner Should Know in 2025
Restaurant management
California's Updated Overtime and Break Laws for Restaurants
Employee scheduling
10 Essential Work Schedules for Running a Smooth Restaurant Operation
Employee scheduling
How to Accurately Calculate Work Hours for Your Restaurant Staff
Employee scheduling
Best Practices for Managing Employee Time and Attendance in Restaurants
Employee scheduling
How to Create an Efficient Restaurant Weekly Schedule That Boosts Productivity
Software integration
Top 5 Benefits of Automating Your Business Workflows
Software integration
The Role of AI in Business Process Automation
Software integration
The Power of API Integrations - Connecting Your Business Tools Seamlessly
Software integration
The Importance of Seamless Integrations in Today's Business Landscape
Software integration
How Workflow Automation Can Save Small Businesses Thousands of Dollars
Software integration
How Any Connector Simplifies API Integrations for Your Business
Software integration
Empowering Your Employees with Automation- A Win-Win Strategy
Software integration
Building a Business Case for Automation in Your Organization
Employee scheduling
Automation in Hospitality - Streamlining Guest Experiences
Restaurant management
5 Ways Restaurants Can Leverage Automation for Operational Success
Sales forecasting
How to Double Your Restaurant's Profit in 30 Days
Inventory management
The Ultimate Guide to Accurate Inventory Counting in Restaurants
Restaurant management
How to Transform Your Restaurant Operations
Restaurant management
How to Effectively Reduce Expenses and Increase Staff Engagement in Your Restaurant
Employee scheduling
How to make sure you will always meet labor goals before you run payroll
Employee scheduling
How to reduce labor costs without retraining your management team.
Restaurant management
3 top reasons your managers should always earn their bonuses
Software integration
How to guarantee your franchise technology rollout will be a success
Employee scheduling
How to reduce labor costs by 3-5% without ever using an excel spreadsheet again
Employee scheduling
How to find and keep your best employees
Software integration
Why your IT team has to provide better mobile apps for you to stay competitive
Accounting payroll
How to streamline your business operations test for maximum efficiency
Software integration
How to make sure your technology projects are on time and on budget
Employee scheduling
Why employee engagement and retention are the keys to improving profitability
Employee scheduling
The easy way to write great employee schedules
Restaurant management
How to manage your restaurant inventory planning to ensure you're never caught short
Inventory management
5 Basic Inventory Management Tips That Can Save You Money
Inventory management
Top 3 Reasons Why You Need Cloud-Based Inventory Management Software
Restaurant management
The Best Food Service Management Companies in the Industry
Software integration
7 Tips for Choosing the Best Restaurant Directory Software
Food safety
What You Need to Know About Food Tech Safety
Employee scheduling
The Top 5 Reasons To Use HR Reporting Software
Food safety
A Guide On What To Know About SQF Food Safety
Inventory management
10 Inventory Management Stock Control Tips For Your Business
Restaurant management
Issues Facing Multi-Chain Restaurants In 2022
Employee scheduling
The Benefits of HR Software Reporting For Professionals
Employee scheduling
5 Top HR Software Solutions To Consider For Your Business
Software integration
5 Reasons Why You Need Restaurant Menu Software
Employee scheduling
Tips for Retaining Hourly Restaurant Employees
Employee scheduling
Hurdles That Keep Restaurant Chains From Becoming The Employer Of Choice
Accounting payroll
Why You Should Start Using Restaurant Payroll Software
Inventory management
How To Make The Most Out Of Your Simple Inventory Management Software
Restaurant management
Food Waste Management- 6 Strategies to Reduce the Impact of Food Waste
Food safety
CDC Food Safety- The Important Perspective
Food safety
What To Know About Taking A Food Safety Class
Inventory management
The Average Restaurant Food Cost Percentage & What You Can Do About It
Inventory management
Inventory Management Best Practices- A Guide to Controlling Your Inventory
Software integration
How to Choose the Right Restaurant Dashboard Software for Your Needs
Inventory management
5 Free Inventory Management Tools for Small Businesses
Food safety
How to Get a Food and Drink Handling License
Employee scheduling
3 Ways You Can Get Your Employees to Love Cloud-based HR and Payroll Software
Inventory management
5 Ways to Improve Your Multi Channel Inventory Management
Inventory management
5 Top Ways to Reduce Your Restaurant Fixed Costs
Inventory management
The Best Inventory Management Software- The Ultimate Guide
Food safety
What To Know About A Food Safety Course Online
Employee scheduling
The Best Free Employee Scheduling Apps to Help Your Business Run Smoothly
Food safety
How To Identify PHF Food Safety Anywhere You Are
Restaurant management
5 Tips for Choosing the Best Kitchen Equipment Supplier
Software integration
Mobile Device Inventory Management- A Guide to Help You Do It Right
Food safety
Food Safety Zone- A Guide to Safely Eating Out
Restaurant management
3 Tips to Find the Best Restaurant Paper Suppliers
Inventory management
Top Free Inventory Management Software for Small Businesses
Food safety
7 Ways To Become A Food Safety Auditor
Employee scheduling
5 Reasons You Should Be Using Free HR Software
Inventory management
4 Types of Inventory Management Systems and How They Affect Your Business
Employee scheduling
HR Recruitment Software- Why Restaurant Chains Fail To Become Preferred Choice
Restaurant management
Food Waste Management Solutions- The Ultimate Guide to Eliminating Food Waste
Employee scheduling
HR Software Solutions- Tips For Retaining Hourly Restaurant Employees
Accounting payroll
What You Need to Know About Restaurant Payroll Laws
Employee scheduling
HR Software List- The Best and the Worst
Restaurant management
How Restaurant Food Suppliers Are Important To A Business
Restaurant management
What Are The Best Restaurant Paper Goods Suppliers?
Inventory management
The Ultimate Guide to Inventory Management Techniques
Food safety
Food Safety Tips- How To Stay Safe at Home
Restaurant management
5 Questions to Ask Yourself Before Hiring a Food Service Management Company
Restaurant management
Ordering Management System- Issues Faced by Multi-Chain Restaurants In 2022
Food safety
Three Steps to Creating a Food Safety Plan
Employee scheduling
The Best Employee Time Clock Machines for Your Business
Employee scheduling
The Top 5 Reasons to Switch to Cloud Based HR Software
Employee scheduling
Our Top 5 Best Employee Scheduling Apps For Small Businesses
Food safety
Food Safety News- A Checklist for Safe Foods
Restaurant management
8 Tips for Successful Financial Management In Food Service
Software integration
5 Tips for Improving Your Data Integration Software
Food safety
5 Benefits of Food Safety That You Need to Know
Restaurant management
America's Fastest Growing Restaurant Chains That You Probably Haven't Heard Of
Employee scheduling
The Best Employee Shift Planning Manager | Employee Scheduling & Shift Planning
Employee scheduling
Free Employee Time Clock to Give Your Business a Competitive Edge
Restaurant management
The Best Restaurant Produce Suppliers in America
Employee scheduling
HR Timesheet Software- What To Look For and How It Works
Restaurant management
Find the Best Restaurant Chemical Suppliers
Employee scheduling
Tracking Time Effectively- The Best HR Time Tracking Software
Accounting payroll
5 Best Business Accounting Software Reviews
Employee scheduling
5 Free Employee Scheduling Apps You Need to Try
Restaurant management
How to Find the Best Restaurant Coffee Suppliers
Frequently Asked Questions
What records should I keep for tips and tip pools?
At minimum - POS closeout tip totals, the pool calculation (points/percentages/hours), hours by job code, payout totals, and a manager sign-off or review trail.
What's the difference between a tip and a service charge?
A tip is optional and chosen by the guest. A service charge is required and set by the business (large-party charge, banquet fee, wellness fee, etc.). They're handled differently in policy and payroll.
Who can be included in a tip pool?
Typically roles in the "chain of service," like servers, bartenders, bussers, runners, and sometimes hosts - depending on how they directly support guest service in your operation.
When do I have to pay out tips? Daily or on payday?
Many restaurants pay tips daily or on the next paycheck. What matters is timely, consistent payment with records that match your policy.
