Calculate tip pooling and distribution for restaurant and hospitality staff. Support for multiple distribution methods to ensure fair tip sharing among your team.
Employee 1
8 hours • 42.1% of total
$210.53
Employee 2
6 hours • 31.6% of total
$157.89
Employee 3
5 hours • 26.3% of total
$131.58
Hours Worked Method:
Tips distributed proportionally based on hours worked:
Total hours: 19.0
Tip per hour: $26.32
Each employee: Hours × Tip per hour
Tip pooling is a practice where tips collected by service staff are combined and redistributed among employees according to a predetermined formula. This system promotes teamwork, ensures fair compensation for all staff members who contribute to customer service, and can help balance income disparities between front-of-house and back-of-house employees.
Under federal law (FLSA), tip pools are legal as long as they only include employees who customarily and regularly receive tips. Managers and supervisors cannot participate in tip pools, and employers cannot keep any portion of employee tips except to cover credit card processing fees.
Total tips divided equally among all participating staff members.
Best For:
Small teams, similar roles, equal workload
Pros:
Simple, promotes teamwork, easy to calculate
Cons:
Doesn't account for hours worked or effort
Tips distributed proportionally based on hours each employee worked during the shift or period.
Best For:
Varying schedules, part-time and full-time mix
Pros:
Fair for different schedules, rewards time worked
Cons:
More complex, requires accurate time tracking
Each role assigned points based on responsibility, with tips distributed proportionally to total points.
Best For:
Multiple roles, varying responsibilities
Pros:
Accounts for role differences, highly customizable
Cons:
Most complex, requires clear point structure
Point systems assign different values to roles based on customer interaction, responsibility, and skill level. Here's a typical restaurant point structure:
| Position | Typical Points | Responsibilities | Customer Interaction |
|---|---|---|---|
| Server | 10 points | Direct service, order taking, table management | High - Primary contact |
| Bartender | 10 points | Drink preparation, bar service, inventory | High - Direct service |
| Busser | 6-7 points | Table clearing, setup, support servers | Medium - Support role |
| Host/Hostess | 5-6 points | Seating, reservations, first impression | Medium - Initial contact |
| Food Runner | 5-6 points | Deliver food, assist servers, quality check | Low - Brief interaction |
| Barback | 4-5 points | Support bartender, stock, clean bar area | Low - Behind scenes |
Point values should be agreed upon by management and staff, documented clearly, and applied consistently. Adjust based on your establishment's specific needs and local customs.
Here's a detailed example of how tip pooling works when distributing based on hours worked:
Total tips collected: $800
| Employee | Position | Hours Worked | Percentage | Tip Amount |
|---|---|---|---|---|
| Sarah | Server | 8 hours | 32% | $256.00 |
| Mike | Server | 6 hours | 24% | $192.00 |
| Jessica | Bartender | 7 hours | 28% | $224.00 |
| Alex | Busser | 4 hours | 16% | $128.00 |
| Total | 25 hours | 100% | $800.00 | |
Calculation Method:
Select a tip pooling method based on your establishment's size, staff structure, and operational needs:
Recommended: Equal split or simple hours-based system. Small teams benefit from simplicity and the equal split promotes strong teamwork. If schedules vary significantly, use hours-based distribution.
Recommended: Hours-based or basic points system. With more staff and varying schedules, hours-based ensures fairness. Consider a simple points system if you have distinct roles with different responsibilities.
Recommended: Points system or separate pools by department. Complex operations benefit from sophisticated points systems that account for role differences. Consider separate pools for bar, dining room, and support staff.
Recommended: Points system with tip-out percentages. Servers may tip out specific percentages to sommeliers, bussers, and food runners while keeping the majority. This recognizes the server's primary role while compensating support staff.
Total tips: $240, 4 employees working the shift
Simple and fair for small teams with similar responsibilities
Total tips: $600, 5 employees with varying hours
Fair distribution accounting for different shift lengths
Total tips: $1,200, 6 employees with different roles
Accounts for different roles and responsibilities
Server earned $400 in tips, tips out support staff
Server keeps majority while compensating support staff fairly
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