For operators · Federal (FLSA) rules built in · Free
Tip pooling policy generator
Four questions, one clean written policy — with the federal rules baked in so an illegal combination can't come out the other side.
Frequently asked
Tip pool policy FAQ
Why do I need a written tip pooling policy at all?
Because tip disputes are records disputes. A written policy shared in advance is what separates a legal pool from a lawsuit: it proves employees knew the rules, shows the math is consistent, and satisfies the notice expectations that come with taking a tip credit.
Can I include cooks and dishwashers in the pool?
Only if you pay everyone full minimum wage in cash and take no tip credit. That "nontraditional pool" has been allowed federally since 2020. The moment you take a tip credit, the pool must be limited to customarily tipped roles — this generator enforces that automatically.
Can a shift lead or working manager get a share?
No. Federal law bars owners, managers, and supervisors from keeping any portion of employee tips — even when they wait tables. Whether someone is a "manager" follows their duties (hiring, firing, directing work), not their title.
Is the generated policy legally binding as-is?
Treat it as a strong starting draft, not final legal advice. It encodes the federal (FLSA) rules, but several states restrict pools further — a quick review by local counsel or your state labor agency is money well spent.
Hours, points, or percentage — which method should I pick?
Hours is simplest and easiest to defend. Points reward role intensity (bartender vs. host) and are common in full service. Percentage tip-outs keep direct tips with the earner and share a slice — common where servers are strong earners. All three are legal federally; pick the one your team can verify at a glance.
Policy on paper, split in seconds
The policy says how — TipHive does the math.
Run the actual nightly split by hours, points, or percentages with TipHive, so every payout matches the policy you just wrote.
Sources & disclaimer
Federal rules encoded here: DOL Fact Sheet #15 (manager exclusion, tip credit notice, nontraditional pools). State laws can be stricter — several states limit pooling further. This generator produces a working draft for review with counsel or your state labor agency, not legal advice. Check your state's baseline rates in our state lookup.