So You Want To Be A Waiter

The best book on waiting tables that you have never read – yet

Tipout pt. 2

So, what does the US Department of Labor say about tip pooling?

“Tip Pooling: The requirement that an employee must retain all tips does not preclude a valid tip pooling or sharing arrangement among employees who customarily and regularly receive tips, such as waiters, waitresses, bellhops, counter personnel (who serve customers), busboys/girls and service bartenders. Tipped employees may not be required to share their tips with employees who have not customarily and regularly participated in tip pooling arrangements, such as dishwashers, cooks, chefs, and janitors. Only those tips that are in excess of tips used for the tip credit may be taken for a pool. Tipped employees cannot be required to contribute a greater percentage of their tips than is customary and reasonable”.

http://www.dol.gov/esa/whd/regs/compliance/whdfs15.pdf

Pretty specific, eh? Now, as far as Oregon goes (a state where the practice of a mandatory tipout to the kitchen seems to happen on occasion), I found this in another blog:

“Oregon law fails to address tips and tip pools and, therefore, BOLI does not enforce any standards regarding tips.  While the U.S. Department of Labor (DOL) establishes regulations regarding tips based on the federal Fair Labor Standards Act (FLSA), the DOL and the courts interpret the law differently.  Recent cases within the United States District Court for the District of Oregon have held that the FLSA does not regulate tips if the employer does not claim a tip credit (and Oregon prohibits employers taking a tip credit).  Employers are also free to make the tip pooling arrangements they dictate a condition of employment. As a result, even though the Department of Labor regulations grant restaurant workers control over their tips, those workers cannot currently assert those rights in Oregon courts”.

And this:

“The requirement that an employee must retain all tips does not preclude a valid tip pooling or sharing arrangement among employees who customarily and regularly receive tips, such as waiters, waitresses, bellhops, counter personnel (who serve customers), busboys/girls and service bartenders”.

Tip Pool Criteria:

  • consists of traditionally tipped employees: waiters, waitresses, servers, bartenders, counter personnel (who serve customers), busboys/girls, and hosts
  • cannot include owners or managers in the tip pool
  • cannot take more than a “customary and reasonable” amount of each employee’s tips (15% of tips or 2% of sales is customary and reasonable according to the Department of Labor)”

And here’s the phrase that allows the tipping of kitchen employees:

“When non-traditionally tipped employees are included in a tip pool, that is when the system has to be entirely voluntary—each employee can decide how much (if any) of her tips to share with anyone else”.

http://pdxrwa.org/category/know-your-rights-a-restaurant-workers-survival-guide/introduction/tip-pooling-tip-out/

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2 responses to “Tipout pt. 2

  1. Pingback: Article on tipping out from The Orlando Sentinel « So You Want To Be A Waiter

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