Combining some or all staff tips into a shared pool that is redistributed by a set formula, rather than each server keeping their own tips.
Tip Pooling
Combining some or all staff tips into a shared pool that is redistributed by a set formula, rather than each server keeping their own tips.
Tip pooling is the practice of collecting tips into a common pool and redistributing them among eligible staff by an agreed formula — often by hours worked or by role-weighted points — instead of each server keeping only their own tips. A related model, tip sharing (or "tip out"), has servers hand a set percentage to support roles like bussers, runners, and bartenders.
Pooling is governed by labor law: in the U.S., rules under the FLSA restrict who can be included, and generally bar owners, managers, and supervisors from sharing in a pool.
- Why operators use it: it rewards teamwork and compensates back-of-house-adjacent support roles that guests do not tip directly.
- How software helps: scheduling and labor platforms such as 7shifts calculate pooled tips from hours and roles and push the result into payroll.
Because the calculations touch wage law, accurate, auditable tip distribution is a compliance matter, not just a convenience.