Use a shared tip jar? You must divide the money by shift — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Use a shared tip jar? You must divide the money by shift

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If your counter service employees share tips customers leave in a tip jar, how you divvy up the money is important. A new case makes it clear that those tips must be counted at the end of each shift and shared among the employees who worked that shift.

Recent case: Sandra Delsing and Amber Boleng are former Starbucks baristas who sued over how their tips were distributed. Starbucks placed a tip jar at each register and tallied the total weekly. Then managers divided the money and distributed it to every service employee who had worked at any time during the week according to how many hours he or she worked.

The court said Minnesota law doesn’t allow that sort of tip sharing. Instead, tips can be shared only by employees who worked the same shift. (Delsing, et al., v. Starbucks, No. 08-CV-1154, DC MN, 2009)

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