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Get Tip Pools right the first time

When it comes to splitting tips, you only have one chance to get it right. If you’re inaccurate, you can impact someone’s financial well-being—and even find yourself at the end of a costly compliance lawsuit.

Here are three tips for ensuring you split tips correctly:

1. Know the Law

The first step to correctly splitting tips is understanding the law. The Fair Labor Standards Act (FLSA) governs how tips must be divided among employees, and it’s important to familiarize yourself with the relevant regulations.

2. Keep Accurate Records

Another important step is keeping accurate records of tips received. This will help you ensure that tips are properly allocated among employees.

3. Communicate With Your Employees

Finally, it’s important to communicate with your employees about tip splitting. Make sure they understand the law and your policies. This will help avoid misunderstandings and potential legal problems.

What’s included in the tip pooling calculator and template?

  • • Sections for an employees, positions, number of shifts.
  • • Multiplier sheet with value add ons.
  • • An easy-to-use template where you can input your employee data and divide tips fairly and quickly.

How to make the most of our Tip Pooling Template

Here’s how to make the most out of your restaurant tip pooling calculator and template:

Step 1: Starting with the first column - input total tip amounts alongside  the staff that will be receiving tips.

Step 2: Input data regarding the hours worked and the multiplier rate associated with each position.

Step 3: Apply multiplier rates and positions in the Multiplier tab to equitably divvy up tips based on position and hours worked.  

Step 4: Divide tips fairly, accurately, and easily!

7shifts tip pooling product dashboard
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Easily and accurately pay out tips to your restaurant team

Your team is the key to success in the restaurant business, and tips are a major part of their compensation. 

This tip pooling template is designed to save you time on calculations and ensure that your team is fairly compensated for their hard work.

Get access to 7shifts tip pooling tools and the entire team management suite including schedulingcommunication, and time clocking.

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