What are the rules for tip-pooling?

Tip-pooling is a practice where employees who receive tips, such as waiters and bartenders, pool their tips together and then divide them among the employees who were involved in the service. This practice is regulated and governed by the Arizona Department of Labor, under their wage and hour law. In Arizona, tip-pooling is only allowed when all the employees who are pooling their tips are employees who customarily and regularly receive tips, such as waiters, bartenders, counter personnel, service bartenders, bus staff, and bussers, or other service employees. These employees must all be part of the same tip-pool, and the employer cannot participate in the pooling and distribution of tips. It has also been determined that no employee can be required as part of any tip pool to give any portion of his or her tips to an employee who does not normally receive tips. Tips must be distributed in a fair and reasonable manner according to the quality of service provided. It is unlawful for employers to keep any portion of tips received by employees from customers. Additionally, the wage and hour law in Arizona also states that an employer cannot require or suggest that tipped employees contribute a portion of their tips to a wage pool, or to any other employee of the business. This is to protect employees from situations where employers might use pooled tips to make up for wages that are below minimum wage. Overall, tip-pooling is an important practice to understand for employees in Arizona who receive tips. It is important to follow the rules in order to ensure that employees are paid correctly and fairly.

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What are the rules for tip-pooling?

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