Tips, Tips Sharing, and Tip Pooling Policy
(a) A tip, or “gratuity,” is money given by a customer to an employee for service
provided to the customer. A customer can give a tip in the form of: cash, check, credit
card, and any other form of payment.
(b) Tip sharing is the practice by which a directly tipped employee gives a portion of his
or her tips to another service employee or food service worker who participated in
providing service to customers and keeps the balance.
(c) Tip pooling is the practice by which the tip earnings of directly tipped employees are
intermingled in a common pool and then redistributed among directly and indirectly
tipped employees.
(d) Directly tipped employees are those who receive tips from patrons or customers
without any intermediary between the patron or customer and the employee.
(e) Indirectly tipped employees are those employees who, without receiving direct tips,
are eligible to receive shared tips or to receive distributions from a tip pool.
(f) Eligibility of employees to receive shared tips, or to receive distributions from a tip
pool, shall be based upon duties and not titles. Eligible employees must perform, or
assist in performing, personal service to patrons at a level that is a principal and regular
part of their duties and is not merely occasional or incidental. Examples of eligible
occupations include:
(1) wait staff;
(2) counter personnel who serve food or beverages to customers;
(3) bus persons;
(4) bartenders;
(5) service bartenders;
(6) barbacks;
(7) food runners;
(8) captains who provide direct food service to customers; and
(9) hosts who greet and seat guests.
(f) Employers may not require directly tipped employees to contribute a greater
percentage of their tips to indirectly tipped employees through tip sharing or tip pooling
than is customary and reasonable.
It is [Full Legal Name of Company] (“Company” or “Brooklyn Made”) policy that all tips
received by an employee from a customer for services rendered by that employee [shall
remain that employees tips OR shall be pooled with the tips of other eligible employees
OR shall be shared with other eligible employees.]
[FOR EMPLOYEES WHO KEEP 100% OF THEIR TIPS: At Brooklyn Made, we
participate in the tip credit program under New York State Labor and the Minimum
Wage Orders, which allows employers to use tips received by employees to make up
the difference between an employee’s hourly wage and the state minimum wage of
$15/hour. Therefore, you must report your tips from each shift worked by emailing your
manager within 4 hours of the end of each shift.]
[FOR EMPLOYEES WHO POOL OR SHARE THEIR TIPS: At Brooklyn Made, we
participate in the tip credit program under New York State Labor and the Minimum
Wage Orders, which allows employers to use tips received by employees to make up
the difference between an employee’s hourly wage and the state minimum wage of
$15/hour. Therefore, you must report your tips from each shift worked by emailing your
manager within 8 hours of receipt.]
By signing below, I acknowledge that I have carefully read, understand, and will comply
with the above Tips, Tips Sharing, and Tip Pooling Policy.
I understand that this policy supersedes any and all written documents or oral
representations regarding Company’s tip retention policy.
I understand that [Company] managers and owners may not participate in the tip policy
in any circumstance.
I understand that if I have questions or concerns at any time about this Tips, Tips Sharing,
and Tip Pooling Policy, I am encouraged to communicate with my immediate supervisor
or [my General Manager/ Human Resources/ the Owner].
Finally, I understand that the tip policy is not a contract or implied contract with employees.
The Company has the ability to prospectively change, modify, or delete this Tips, Tips
Sharing, and Tip Pooling Policy as it deems appropriate without obtaining another
person’s consent or agreement.
Printed
Name:____________________________________________
Date:________________
Signature:_______________________________________________
[Place copy of signature page in personnel file]