Tips, Tip Pooling, and Tip Credits - What Employees Need to Know
Employees in the service industry have to follow a rule called tip pooling and this applies to waitress, waiters, and bartenders.
Most people who come to the restaurants, hotels and bars usually tip the service employees.
Most satisfied customers even have rules like they would tip a certain amount of the bill.
This amount can be included within the bill or they may leave the cash in the folder.
Did you ever know that there are some legal rules with regard to tips and excess allowance that a person receives on the job? Employers in some States are allowed to pay you lower wages because of the tips you get on the job.
This is because you will be making additional money by way of tips.
You may also have to pool in the tips you receive along with other employees and then share the tips at the end of the month.
In this case the tips are divided equally among all the employees.
The most important rule regarding tips is that employees have a right to them and not the employer.
The employees in the service industry need not give their tips that they earn to their employers.
There is a tip pooling agreement by default wherein the money received from tips is distributed among employees, and the employer does not have any rights to claim it.
However, this rule is not as easily applied as you think it might be.
For instance, a particular customer pays the bill by a credit card and includes some amount as tip.
The credit bills are given to the bank and are pooled into the general funds.
There is no indication of the tip amount to the finance department of the employer actually.
You will need to make a note of it.
Most people who come to the restaurants, hotels and bars usually tip the service employees.
Most satisfied customers even have rules like they would tip a certain amount of the bill.
This amount can be included within the bill or they may leave the cash in the folder.
Did you ever know that there are some legal rules with regard to tips and excess allowance that a person receives on the job? Employers in some States are allowed to pay you lower wages because of the tips you get on the job.
This is because you will be making additional money by way of tips.
You may also have to pool in the tips you receive along with other employees and then share the tips at the end of the month.
In this case the tips are divided equally among all the employees.
The most important rule regarding tips is that employees have a right to them and not the employer.
The employees in the service industry need not give their tips that they earn to their employers.
There is a tip pooling agreement by default wherein the money received from tips is distributed among employees, and the employer does not have any rights to claim it.
However, this rule is not as easily applied as you think it might be.
For instance, a particular customer pays the bill by a credit card and includes some amount as tip.
The credit bills are given to the bank and are pooled into the general funds.
There is no indication of the tip amount to the finance department of the employer actually.
You will need to make a note of it.