Tip Pooling
The FLSA prohibits restaurants from requiring tip pooling amongst staff. Voluntary tip pooling is legal, but only waiters, bartenders, and restaurant employees making less than minimum wage and who have direct interaction with patrons may participate in tip collection. Managers, cooks, dishwashers, etc. are not permitted to receive tips on a mandatory basis.

Many restaurants and bars violate the FLSA by mandating tip pooling. Successful tip pooling lawsuits have recently been brought against Starbucks, Hard Rock Café, Luby’s, and Outback Steakhouse.

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