Can managers be included in tip jar distribution?

A 2018 amendment to the Fair Labor Standards Act has restaurants re-evaluating their tipping practices. The change states, “an employer may not keep tips received by its employees … including allowing managers or supervisors to keep any portion of employees’ tips …. ’’

Thus, if an employee is being paid a manager’s wage, they should not accept tips. However, if an employee is acting in a dual role as a manager and waitstaff during a shift, they could still accept tips or participate in tip pools.

As every situation is unique, be sure to check with your attorney before changing internal procedures.

– Ashley L. Wilkinson, Meyer, Unkovic & Scott, alw@muslaw.com