Tip pooling rules

A tip pool is when tips go into a shared pot and get split among staff, instead of each server keeping their own. Pooling is legal in most of the country, but there are firm limits on who can be in the pool. In general, managers, supervisors, and owners cannot take a share of employee tips, and whether back-of-house staff can be included depends on how the employer pays its workers.

Who can be in a tip pool?

• Front-of-house tipped staff (servers, bartenders, bussers, runners) can share a pool.
• Back-of-house staff (cooks, dishwashers) can be included only when the employer pays the full minimum wage and takes no tip credit.
• Managers, supervisors, and owners cannot keep tips from the pool, other than tips they personally earn from a customer they directly served.

Tip pooling versus tip sharing

People use these terms loosely. Tip pooling usually means all tips are combined and redistributed by a formula, often by hours worked or a point system. Tip sharing (or a tip-out) usually means you keep your tips but pass a set percentage to support roles. Both are common; your restaurant should tell you which it uses and the exact split.

What is a tip credit, and why does it matter?

A tip credit lets an employer pay a lower cash wage and count your tips toward the minimum wage. In states that allow it, that lower cash wage is why the pool rules are stricter. In states that require the full minimum wage for tipped staff, employers have more freedom to include back-of-house workers. You can see your state's tipped cash wage and whether a tip credit applies on our pay by state pages.

Know your split, then track it

Ask for your pool or tip-out formula in writing, then log every shift so you can check that your take-home matches what the formula should produce. Small errors add up over a year.

This is general information, not legal advice. Rules change and vary by state.