EpicShifts logo
EpicShifts™
Glossary

What is tip pooling?

Tip pooling is an arrangement where employees combine some or all of their tips into a shared pool that is then redistributed among eligible staff according to a set formula, such as by role percentage or hours worked.

Tip pooling spreads gratuities across the team that produced the guest experience — not just the server who received the tip, but bartenders, bussers, runners, and sometimes kitchen staff. It is meant to reward teamwork and smooth out luck between sections.

The rules depend on the tip credit. When an employer takes a tip credit, the pool can generally only include employees who customarily receive tips (front of house). When the employer pays the full minimum wage and takes no tip credit, federal rules allow back-of-house staff (cooks, dishwashers) to be included too.

One rule is absolute: owners, managers, and supervisors may never keep any portion of a tip pool, regardless of the arrangement. Pools should also be transparent so staff trust the split.

Restaurant example

A restaurant pools all tips for a shift and splits them: 60% to servers, 15% to bartenders, 15% to bussers, and 10% to the kitchen (the restaurant pays full minimum wage, so kitchen inclusion is allowed). A $1,000 night sends $150 to the bussers.

Frequently asked questions

Can kitchen staff be included in a tip pool?

Only if the employer pays the full minimum wage and takes no tip credit. When a tip credit is taken, the pool is limited to traditionally tipped (front-of-house) employees. Managers and owners can never share in the pool.

Can a manager take a cut of the tip pool?

No. Under federal law, owners, managers, and supervisors are prohibited from keeping any portion of employees’ tips, even when a valid tip pool exists.

Schedule smarter, not harder

EpicShifts handles split shifts, rest gaps, and labor cost as you build the schedule — and your team sees it on mobile. Free to start.


By Dustin Hanke, Founder, EpicShifts. Published 2026-06-30, updated 2026-06-30.
We Value Your Privacy

We use cookies to improve your experience on our platform. Essential cookies are required for the site to function properly (authentication, security). Optional cookies help us understand how you use the site and improve our services. Learn more about cookies