<ul><li>Managers or supervisors of tipped workers cannot participate in a tip pool, even if they also perform tipped work, according to the U.S. Department of Labor.</li><li>A business owner with at least a 20% equity interest in the enterprise and actively engaged in its management is considered a manager or supervisor who cannot keep other employees' tips.</li><li>However, managers or supervisors may keep tips received directly from customers based on the service they directly and solely provide.</li><li>Employers have faced penalties for including salaried managers in tip pools, which is not a popular form of compensation among the public.</li></ul>

DOL: Managers cannot take pooled tips — even if they also perform tipped work

Discover more