Pooling tips? Only certain employees can join in — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Pooling tips? Only certain employees can join in

Get PDF file

by on
in Compensation and Benefits,Human Resources

If your employees receive tips, be aware that only certain types of employees can participate in tip-pooling programs.

In such systems, employees are paid below the minimum wage on the assumption that the tipped income will push their hourly wage above the minimum. But a recent lawsuit against the Luby’s Restaurant chain in Texas forced the company to pay $366,864 in back wages to 1,680 current and former employees who were improperly paid due to the company’s tip-pooling policy.

Tip pooling is limited to employees who customarily and regularly receive more than $30 a month in tips. Luby’s cashiers and checkers participated in the tip-pooling system, which, the feds said, violated federal law.

Leave a Comment

Previous post:

Next post: