Tip Pooling Policy

Purpose

It is the policy of [Company Name] to outline our tip pooling practices for those employees who are eligible and wish to participate in the tip pooling arrangement.

In addition to human resources (HR), all managers and supervisors understand the specific procedures for participation and can answer detailed questions regarding the workings of the tip pool program for newly hired staff.

Eligibility

Staff associates in the following job classes are eligible to participate in tip pooling arrangements under this policy: bell staff, customer counter staff, bar and wait staff, and bus staff. To participate in this pool arrangement, staff members must make a minimum of $40 per month in tips/gratuities. No supervisor or manager is eligible to receive any share in the tip pool. For eligible staff, new-hire onboarding will afford them the opportunity to obtain authorization forms if they wish to participate.

Procedures

Each eligible staff member will receive a copy of this policy and will acknowledge by written notice that he or she has received and read this policy. Only staff members who contribute to a pool arrangement will be considered participants. The second part of the policy acknowledgment form allows a staff member to indicate his or her agreement to participate.

Legal Compliance

It is the policy of [Company Name] to comply with federal and state tax laws requiring all tips/gratuities to be reported. Each pay week, payroll is required to verify that the tips used in paying an employee in a week equal or exceed federal and/or state requirements for the week. If any provision of this policy conflicts with either federal or state law, employee will be paid in accordance with the most generous applicable law.