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'Tip Pooling' and Wage and Hour Laws

There have been numerous cases involving various challenges to employer 'tip-pooling' policies, particularly in Massachusetts and California, with wait staff and other restaurant employees claiming that such policies violate state wage and hour laws. This article describes this recent line of cases, which are of particular interest to employers and employees in the restaurant or hospitality industries, but which have extended to other industries as well. The article also suggests guidelines for employers in the restaurant and hospitality industries to adopt so that their tip-pooling policies do not run afoul of state wage and hour laws.

25 minute read September 26, 2007 at 09:26 AM
By
Neil V. McKittrick
'Tip Pooling' and Wage and Hour Laws

In 2003, a Massachusetts Superior Court ruled that a restaurant may require its wait staff to share tips with other employees in a tip pool without violating the Massachusetts Payment of Wages statute.

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