What is the law on pooled tips?
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What is the law on pooled tips?
I work at a job we’re we only receive tips on holidays but all the tips are combined at then split after the 24 hour period based on the number of hours worked. Is this legal?
Asked on November 23, 2011 under Employment Labor Law, Connecticut
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
However, there are 2 exceptions:
- A tip pooling arrangement is illegal if an employee must relinquish more than a “customary and reasonable” amount of tips to the pool (although the law does not place any maximum on the amount of tips contributed to a pool); and
- Only employees who customarily and regularly receive tips can participate in a tip pool (e.g. a waiter, bellhop, busboy, counter personnel, hostess or bartender); employees who do not customarily and regularly receive tips can't participate in a tip pool (e.g. a janitor, dishwasher, cook or laundry room attendant).
Note: Employers or their agents however, cannot participate in a tip pool.
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