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Can you use tip pooling at your Florida business? 

On Behalf of | Nov 28, 2023 | Employment Litigation

A tip pool is an arrangement where tips are combined and then redistributed. This can sometimes be helpful in a business if the owner wants all of the waitstaff to be able to help people at any table, at any time. They are focusing on the convenience of their guests. But this means that multiple people may serve the same guests, and a tip pool is the solution to ensure that all workers get the money they deserve.

As a business owner, you may also be interested in using this setup because you want to focus on your guests. A tip pool does so. But there are a few things you need to know about how to use it.

Only tipped employees can be included

First and foremost, you have to be very careful about who is included in the tip pool. It can only be employees who traditionally get tips. A manager or supervisor can’t be included. You cannot include yourself as the business owner. If people take money from the tip pool who are not legally allowed to do so, it could be a form of wage theft.

Employees must be informed

Additionally, it’s very important to inform employees that you want to use a tip pool in advance. You cannot tell them after the fact if they thought they were earning tips only for themselves. They deserve to know in advance so they can decide if that is a situation that they would like to work in or not.

This is just one example of the many things you’ll need to know as a business owner. Be sure you carefully take the time to look into all of the legal details as you run your company.