First Committee Member
Bill Werner, Chair
Number of Pages
Tip sharing and tip pooling are common practices within the hospitality industry, particularly in foodservice and in hotels. Several companies merely encourage these practices while others require participation. Not all of these companies comply with their state and federal labor laws. More and more cases have surfaced where employees are challenging the legality of tip pooling and tip sharing in the past few years. Some of those cases have resulted in significant losses to the employers. Starbucks, for example, has just been ordered to pay back $105 million to their baristas for violating California labor laws regulating tip pooling. Hospitality driven companies can benefit from understanding their state and federal laws pertaining to tips to avoid expensive lawsuits and negative media. The purpose of my paper is to create a resource that describes the legal boundaries in which employers can develop or evaluate their own tip pooling and tip sharing policies and practices.
Hospitality industry; Tipping; Tipping – Law and legislation
Hospitality Administration and Management
Ahmed, Rebecca, "Legal regulations of tip pooling and tip sharing in the United States hospitality industry" (2009). UNLV Theses, Dissertations, Professional Papers, and Capstones. 593.