What are the rules for tip-pooling?
Tip-pooling is a practice in the restaurant industry where employees combine their tips to make a pool of money that is shared among all employees. This is typically done at the end of a shift when all tips have been received. In Illinois, tip-pooling is allowed but only if certain rules are followed. First, only employees who regularly receive tips can participate in the tip pool. This means that managers, owners, chefs, or other employees who don’t directly serve customers cannot take part in the pool. Furthermore, employees cannot lose any of their own tips to the pool – each employee must still keep their own tips separate. In addition, the total amount of the pool must not exceed 15 percent of the total tips that have been received. This is to ensure that tips are shared fairly among all employees who regularly receive tips. Employees can decide how the pool is divided, but the division must be based on the employees’ individual contribution to customer service and must not be based on a set percentage. Lastly, any tip pool that is created must be voluntary. No employee can be forced to participate in the pool, and no deductions can be taken from an employee’s wages for participating in a pool. Following these rules is necessary to ensure fair tip-pooling practices in Illinois.
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