Use this free tip pool calculator to split tips fairly among your restaurant staff. Add employees, their hours, and role (front of house vs. back of house), and instantly calculate each person's share — including tip-outs to bussers, runners, and kitchen staff.
Federal law (FLSA) and many state laws regulate tip pools. This calculator helps you design a compliant distribution while keeping it simple. Always verify your tip pool policy with your state's labor department and legal counsel.
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Distribute tips fairly across your team
A tip pool combines all tips from a shift or period and distributes them among staff based on a pre-agreed formula. Tip pools are legal under federal law (FLSA) as long as: (1) the employer doesn't take a tip credit, (2) the pool doesn't include managers or owners, and (3) tips are distributed to employees who customarily receive tips. Many states have additional rules — check your local labor laws.
Common tip distribution methods: (1) Hours-based — each person gets (their hours ÷ total hours) × total tips; (2) Point-based — servers earn points by shift type/duration, tips split by points; (3) Fixed percentage — servers keep 70-80%, tip out 20-30% to BOH. Our calculator uses the hours-based method as it's the most transparent and fair.
Industry standard: servers tip out 15–25% of their tips to support staff. Common breakdown: bussers receive 1–2% of total sales (or 15–20% of tips), bartenders 10–15% of drink sales or flat per-drink, runners 1–2% of food sales. Many restaurants now have mandatory tip pools that distribute all tips proportionally to hours worked across both front and back of house.
Under federal law, managers and supervisors cannot participate in a tip pool if the employer takes a tip credit. However, if the employer pays full minimum wage (no tip credit), managers can be included in a valid tip pool in some states. Many states explicitly prohibit any non-tipped employee from receiving tip pool distributions. Always consult your state's labor laws.
This calculator provides estimates for informational purposes only. Consult a labor law attorney to ensure your tip pool policy complies with federal, state, and local regulations.