Q: One of our assistant managers tends bar, should she keep her tips?
A: Under state and federal law, employers, supervisors, and managers are prohibited from keeping any portion of employees’ tips. However, managers and supervisors may keep tips they receive directly from customers based on service that they directly and solely provide. Note the highlighted words in this sentence. The tips must be received directly from customers, and the tips must be for service that the manager or supervisor directly and solely provides.
A: Under state and federal law, employers, supervisors, and managers are prohibited from keeping any portion of employees’ tips. However, managers and supervisors may keep tips they receive directly from customers based on service that they directly and solely provide. Note the highlighted words in this sentence. The tips must be received directly from customers, and the tips must be for service that the manager or supervisor directly and solely provides.
For example, if a bar customer tips a manager for preparing and serving a drink, the manager may keep that tip. But if a manager serves dinner customers at a table in the bar area and is assisted by food runners or bussers, the manager may not have solely provided the service that prompted the tip. Thus, the manager should not retain that tip. Managers may contribute tips to tip pools but should not receive tips from tip pools.