{"id":579,"date":"2017-09-25T20:42:45","date_gmt":"2017-09-25T20:42:45","guid":{"rendered":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/?p=579"},"modified":"2020-07-31T13:29:13","modified_gmt":"2020-07-31T13:29:13","slug":"getting-tip-sy-what-brewers-need-to-know-about-tip-pooling-arrangements","status":"publish","type":"post","link":"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2017\/09\/25\/getting-tip-sy-what-brewers-need-to-know-about-tip-pooling-arrangements\/","title":{"rendered":"Getting \u201cTip\u201d-sy: What Brewers Need To Know About Tip-Pooling Arrangements"},"content":{"rendered":"<p>Over the summer, news broke that Surly Brewing Co. was found liable by a Minnesota court for <a href=\"http:\/\/www.startribune.com\/tip-pools-at-surly-brewing-become-focus-of-court-case\/435631773\/\">violations of the state\u2019s tip-pooling law<\/a>.\u00a0 The brewery, which operates a large beer hall in Minneapolis, was accused by a former bartender of requiring staff to participate in an unlawful tip-pooling scheme.\u00a0 Under Minnesota law, employees are allowed to organize their own tip pools, but employers are not allowed to enforce tip-pooling or to control how it operates.<\/p>\n<p>Navigating the federal and state wage laws applicable to the receipt of tips by service staff can be complicated.\u00a0 With taprooms becoming a more and more popular way of getting beer into customers\u2019 hands, brewers need to be aware of the rules regarding tips and tip-pooling that apply to their bartenders and wait staff.\u00a0 While Massachusetts does allow tip-pooling, employers have to meet certain requirements to stay in compliance.<\/p>\n<p>Here\u2019s what Massachusetts brewers need to know:<\/p>\n<ul>\n<li><strong>The Basic Rule<\/strong>: Tips belong to the employees who provided the service to the patron.\u00a0 The only exception is when the employer has instituted a valid tip pool, as described below.<\/li>\n<li><strong>Minimum Wage and \u201cTip Credits\u201d<\/strong>: Tipped employees must always receive at least the minimum wage, which in Massachusetts is currently $11.00 per hour.\u00a0 Employers may pay tipped employees a minimum of $3.75 per hour and count tips earned as a \u201ccredit\u201d towards meeting the minimum wage of $11.00 per hour.\u00a0 If the employee doesn\u2019t make enough tips during a given workweek to earn at least the minimum wage for each hour worked, the employer must pay the difference.<\/li>\n<li><strong>Tip Pools<\/strong>: Massachusetts law allows employers to require tip-pooling or \u201ctipping out\u201d among their service staff, subject to two limitations.\u00a0 First, all employees subject to the tip pool must still receive at least the full minimum wage for each hour of their work.\u00a0 Second, only bona fide wait staff, service bartenders, and other service employees may participate in the tip pool.\u00a0 This means that no portion of the tip pool may go to the employer itself, to staff with any managerial responsibility (including shift supervisors, ma\u00eetre d\u2019s, etc.), to kitchen staff or any other \u201cback-of-the-house\u201d staff, or to any other employee who does not serve patrons directly.<\/li>\n<li><strong>\u201cService Charges\u201d<\/strong>: In Massachusetts, when employers add a mandatory \u201cservice charge\u201d to bills (for example, an 18% charge for large parties or private events), these charges are considered tips and must be distributed to the employee(s) who provided the service.\u00a0 Employers may charge a \u201chouse\u201d or administrative fee, but only if the fee is clearly designated and the patron is informed that the charge is not a tip or service charge that will go to service staff.\u00a0 Make sure that any such charge is described in writing on your event contracts, invoices, or bills.<\/li>\n<\/ul>\n<p>Finally, be aware that Massachusetts is a <em>strict enforcer<\/em> of its wage laws: employees who succeed in wage claims against their employers are entitled to recover triple the unpaid wages or tips owed to them, plus the cost of their attorneys\u2019 fees in pursuing the claim.\u00a0 Aggrieved employees can bring lawsuits on behalf of classes of fellow employees subject to the same objectionable tip-pooling policies, which has led to many high-profile claims against <a href=\"https:\/\/www.bostonglobe.com\/business\/2015\/03\/20\/legal-sea-foods-hit-with-another-tips-lawsuit\/xGXLLPAvwLUUye1BTEQyqM\/story.html\">local restaurants<\/a> and some <a href=\"http:\/\/www.huffingtonpost.com\/2012\/11\/13\/starbucks-workers-tips-massachusetts-suit_n_2121931.html\">multi-million dollar judgments<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Over the summer, news broke that Surly Brewing Co. was found liable by a Minnesota court for violations of the state&rsquo;s tip-pooling law.&nbsp; The brewery, which operates a large beer hall in Minneapolis, was accused by a former bartender of requiring staff to participate in an unlawful tip-pooling scheme.&nbsp; Under&hellip;<\/p>\n","protected":false},"author":30,"featured_media":652,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_links_to":"","_links_to_target":""},"categories":[21,20],"tags":[23,24,25,26],"class_list":["post-579","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employees","category-owning-the-brewery","tag-service-charges","tag-tip-credits","tag-tip-pooling","tag-tips"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Getting \u201cTip\u201d-sy: What Brewers Need To Know About Tip-Pooling Arrangements - At the Bar With Bowditch<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bowditch.com\/craftbrewerylegalblog\/2017\/09\/25\/getting-tip-sy-what-brewers-need-to-know-about-tip-pooling-arrangements\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Getting \u201cTip\u201d-sy: What Brewers Need To Know About Tip-Pooling Arrangements - At the Bar With Bowditch\" \/>\n<meta property=\"og:description\" content=\"Over the summer, news broke that Surly Brewing Co. was found liable by a Minnesota court for violations of the state&rsquo;s tip-pooling law.&nbsp; 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