Your Tips Are Yours: Know Your Rights About Tip Pooling and Managers

At WorkRight Law, we fight to protect workers from being taken advantage of by employers. If you’re a tipped employee, it’s important to understand your rights—especially when it comes to how tips are handled and shared.

What You Should Know About Tip Pooling and Managers

The U.S. Department of Labor (DOL) recently clarified an important rule about tip pooling under federal law: managers and supervisors cannot take a share of tips, even if they perform some of the same duties as tipped employees. This rule is critical to ensure that the hardworking employees who rely on tips receive their fair share.

Under the Fair Labor Standards Act (FLSA), managers and supervisors are prohibited from participating in tip pools. Even if a manager occasionally helps serve tables or performs other tipped tasks, they cannot claim a portion of the tips left by customers. Employers who violate this rule are breaking the law—and that’s where we come in.

What to Watch Out For

You might have a claim against your employer if:

1. Your manager or supervisor is part of your tip pool.

If someone with hiring and firing authority or who sets schedules and pay rates is taking tips, they’re violating the law.

2. You’re pressured to share tips with management.

Employers cannot force tipped workers to share tips with those who aren’t entitled to them.

3. Your tips are being reduced unfairly.

Employers can only use tips as part of a valid tip pool shared among eligible employees. Tips are your property, and managers can’t take a cut.

4. You’re unsure whether your manager is “exempt” under the law.

Some employers try to blur the line between tipped workers and management to justify illegal tip pooling. We can help you figure out if your rights have been violated.

What You Can Do

If your employer is allowing managers or supervisors to dip into your hard-earned tips, they may owe you significant unpaid wages and penalties. At WorkRight Law, we’re here to help. We focus on advocating for employees who have been treated unfairly, and we’re ready to fight for you.

You deserve to keep the tips you’ve earned. If you think your employer is violating federal or state tip laws, don’t wait—reach out to WorkRight Law. We’ll evaluate your case for free and help you take the first steps toward getting the justice and compensation you deserve.

Call us for a free consultation at (562) 760-8803. Let’s make things right.

Your rights matter. Let us help you protect them.