A tip-pooling arrangement is legal and the employer is entitled to the tip credit where a tip-pooling arrangment includes only employees that are customarily tipped, i.e., waitressess, waiters, bartenders, servers, bussers, etc. If the tip-pooling includes employees that are not customarily tipped such as cooks and dishwashers, the employer is not entitled to the tip credit and all employees must be paid at least the hourly minimum wage. If you have questions regarding the tip credit and how it is applied to you, contact Lexington, Kentucky wages and overtime lawyer Robert Abell at 859-254-7076.

When is a tip-pooling arrangement illegal?

 

A: A tip-pooling arrangement is legal and the employer is entitled to the tip credit where a tip-pooling arrangment includes only employees that are customarily tipped, i.e., waitressess, waiters, bartenders, servers, bussers, etc.  If the tip-pooling includes employees that are not customarily tipped such as cooks and dishwashers, the employer is not entitled to the tip credit and all employees must be paid at least the hourly minimum wage.  

If you have questions regarding the tip credit and how it is applied to you, contact Lexington, Kentucky wages and overtime lawyer Robert Abell at 859-254-7076.   


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