What are the rules for tip-pooling?

Tip pooling is a practice in which workers in the hospitality industry contribute their tips to a shared pool at the end of their shift, which is then redistributed among employees. Tip pooling is regulated by the Maryland Department of Labor, Licensing, and Regulation (DLLR). According to Maryland law, all tip pooling practices must conform to certain rules. Tip pooling is only allowed for workers who “customarily and regularly receive tips”; this includes servers, bartenders, busboys, etc. Tip pooling is not allowed for any other employees, including managers, chefs, or owners. In addition, Maryland law requires that the amount of money distributed in the tip pooling must be “reasonable and equitable.” This means that workers with the same job duties must receive the same amount of tips, and that the tips must be proportional to the amount of work employees performed. Finally, Maryland law states that all tips must be evenly distributed among employees on the same shift. This means that workers who work during the same time period must receive an equal amount of tips. The Maryland DLLR enforces these laws to ensure that tip pooling is fair, equitable, and reasonable. All employers must comply with Maryland’s wage and hour laws in order to protect the rights of workers.

Related FAQs

What is the minimum wage in my state?
What is the employee right to minimum wage?
What are the consequences of not paying employees the minimum wage?
What are the implications of not complying with wage and hour laws?
Are employers allowed to pay a lower rate for piecework?
What are the laws governing wages and tips for tipped employees?
Are employers allowed to pay commissions in lieu of an hourly wage?
What are the rules regarding meal and rest breaks?
What is the federal minimum wage?
What type of records must employers keep in regards to wage and hour laws?

What are the rules for tip-pooling?

Related FAQs

Related Blog Posts