Chrysanthemum_small
Reputation: 1

What does current Washington State law have to say about tipping out fellow employees/tip out percentages?

I'm looking for information regarding Washington state law and tip out procedures. I've heard that with tip pooling, you tip the BOH employees a percentage of total food sales only. Other places require a tip out of 5-7% of Gross Sales that gets split up among BOH staff. Are you required to tip out by law? Are you required to tip out your employer when they work shifts? What percentage are you required to tip out? AND What percentage of your tips are you required to declare?

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  • Sacri_ordines_by_charism_small
    Reputation: 3723

    Yay tips!
    Tipping out to good cooks is great for everyone! Though I've never been a huge fan of tipping out to bussers (really, what are they doing to make the meal/experience all that better, that the janitor or even food supplier isn't also doing in some degree?)
    Tipping out to a good host makes good sense too.

    That said,

    It's not WA state law, but Federal DOL and 9th circuit cases you should look to: this year's Cumbie v. Woody Woo, Inc case makes it clear tip pooling is legal & okay so long as no one ends up paid less than minimum wage, and leaves the question of whether supervisors/owners should be in the pools unanswered. In general, we all know it's skeevy (make sure to call them out if they aren't actually doing a BOH task that night), and the more dirty looks you give that boss the better. Especially if they're salary.

    It's not that you 'are required by law', it's that you knowingly entered into employment in a job known for tip pooling and have to suck it up - much like commissioned salespeople can't complain if their check fluctuates month to month: that is to be expected.
    There's no max/min percentage: it's whatever the boss says (again, so long as you are still getting min wage, everything's legal), so long as it's uniform and fair (no requiring the girls to tip out 15% and the boys tip out 20%, or hispanic BOH get 15 and the asian BOH get 10 = serious violations and lawsuit bait there).
    While hardly anyone does it, you are required by federal law to report all tips that you take home, so 100% is the answer to your last question. However, you'd have firm footing to say you don't have to pay tax on tips that you tip out: the cooks have to pay that, since it's now THEIR income.

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