There are three common ways to distribute tips back to employees:
1. Tipped Employee Keeps Their Tips: This one is simple enough. Whatever tips the employee makes during their shift, they get to keep.
2. Tip Pooling: A group of tipped employees group their tips and split them, usually evenly, at the end of a certain time frame.
3. Tip Sharing: A group of tipped employees contributes a portion of their tips to non-tipped employees. This is most common in full service restaurants where servers have a support team, such as bussers and food runners or bartenders who have barbacks.
Some restaurateurs decide to go the most common route, with tipped employees like waitstaff and bartenders keeping whatever tips they make during their shift. Others decide to do tip pooling or tip sharing. You have to decide what makes the most sense for your restaurant, while also considering the federal and state regulations (or limitations) that may apply to your desired approach.