Issues in Tip Sharing

Many restaurants and bars across the countrydifference between minimum wage and the base
require their employees to pool their tips into onerate meaning that it doesn't matter how many
big reserve which is then divided across alltables a person works, the amount at the end of
employees evenly at the end of the night. Playingthe night will be the same.
into this is that the restaurant may pay theSometimes a restaurant will opt to divide the total
employees less than minimum wage and then usetip haul at the end of a pay period. Some
the tips to bring the wage up to minimum wagerestaurants may not divide the tips based on the
or above.number of hours worked but rather award a flat
One of the big issues in tip sharing comes uprate based on the number of employees. This is
when those that directly earn tips share their tipsnot fair to those that both work a lot of hours
with those that don't earn tips. For example,and more tables as they get the same amount
requiring the servers and bartenders to shareas a person who works one shift during the entire
their tips with the busboys or cleaning staff ofpay period.
the restaurant. The servers and bartenders did allOverall, there are a huge number of problems
the work to earn the tip and yet they arewith the concept known as tip sharing. Many of
required to share their tips with the staff of thethe tip sharing schemes have been deemed illegal
restaurant that doesn't bring in any tip money.both by legislatures and courts across the
Yes, they help the overall atmosphere but theycountry. This, however, does not stop restaurants
don't actually bring in tips.and bars alike from attempting to find ways to
Another problem with tip sharing is that it doesn'tuse tips to ensure that all of their employees
necessarily spread evenly. Someone with 10make minimum wage without spending more out
tables at a time should reasonably expect to earnof pocket. The biggest problem with this system
more in tips than someone working only 5 tables.is that the tips aren't tips anymore if they are
Under pooling and sharing, the tips aren't an extraused to even out salary. They are then salary
in addition to minimum wage. They make up theexcept they can't be fully depended on.