What are the rules for tip-pooling?

Tip-pooling is a practice that allows employees who receive tips to contribute a portion of their income to a common pool. In Florida, there are certain rules and regulations that employers must follow when it comes to tip-pooling. Firstly, only employees who are “customarily and regularly” tipped may participate in a tip-pool. Secondly, employers may not require employees to contribute more than 20% of their tips to the tip pool. Thirdly, non-tipped employees cannot be given any part of the pooled tips. Lastly, employers cannot take a portion of the tip pool for their own use. Employers must also ensure that tips are given out fairly and equitably among participating employees. Employers should not encourage one employee to tip another more than what would be considered customary and normal. Nor should employers provide incentives or other forms of rewards for employee’s who give out the largest tips. Employers are responsible for informing their employees clearly about their rights and the rules of the tip pool. This includes informing them about the portion of their tips that they are required to contribute to the tip pool, as well as the distribution of those pooled tips. In Florida, there can be serious consequences for employers who fail to comply with wage and hour laws, so it is important for employers to stay informed and comply with the state’s regulations.

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What are the rules for tip-pooling?

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