A Refresher Dip into the Tip Pool
The United States Department of Labor (DOL) is increasing its scrutiny of tip pooling practices. An inappropriately administered tip pool can result in its invalidation, which can in turn result in liability to the employer for unpaid wages. To ensure a safe tip pool, consider the following: 1. Notify employees in writing of the tip credit arrangement. For example, you can make a notation on the pay stubs, include an acknowledgment in a new hire packet, or post a notice near the time clock. The key here is to provide adequate notice to employees and retain proof of this notice. 2. Keep management out of the tip pool. Remember that only employees who "regularly receive tips" can participate in a valid tip pool. This usually excludes management-level employees. 3. For employees who perform tipped and non-tipped jobs (such as an employee who serves as both a waiter and a dishwasher depending on the shift), remember that the tip credit is only a