Home Business Can managers be included in tip jar distribution?

Can managers be included in tip jar distribution?

by Chris Butsch
coin jar

A 2018 amendment to the Fair Labor Standards Act has restaurants re-evaluating their tipping practices. The change states, “an employer may not keep tips received by its employees … including allowing managers or supervisors to keep any portion of employees’ tips … ’’

Thus, if an employee is being paid a manager’s wage, they should not accept tips. However, if an employee is acting in a dual role as a manager and waitstaff during a shift, they could still accept tips or participate in tip pools.

As every situation is unique, be sure to check with your attorney before changing internal procedures.

Ashley L. Wilkinson, Meyer, Unkovic & Scott, alw@muslaw.com

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