provided the participants are not required to contribute a greater percentage of their tips to the pool than is customary or reasonable.

Employers often ask whether it is possible for management to run a tip pool or participate in operating one. The answer is a qualified “yes”—but employers should pay close attention to the following DOL guidelines on tip pooling:

Tip-pooling arrangements are only allowed among employees who customarily receive tips. The following occupations have been recognized as falling within the eligible category: bellhops, waiters and waitresses (including cocktail servers), counter personnel who serve customers, bus-persons, and service bartenders.

It is not required that bus-persons or others who share in tips receive tips directly from customers. Both the amounts retained by the servers, for example, and those given to bus-persons are considered the tips of the individual who retains them.

A valid tip-pooling arrangement cannot require servers to contribute a greater percentage of their tips than is customary and reasonable. For enforcement purposes, the DOL will not question pool contributions that do not exceed 15% of the employee’s tips. However, only tips in excess of the tip credit may be taken for the pool.

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Upcoming Events


June 23–25, 2013
2013 Southwest Foodservice Expo, Dallas

July 9–10
Introduction to Restaurant Management, San Antonio
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Key Issues


Supreme Court Upholds the Patient Protection and Affordable Care Act
June 28, 2012 - The Supreme Court has held that the individual mandate provisions of the PPACA are constitutional. The Act imposes a tax penalty on individuals who elect not to purchase health insurance. Congress has broad taxing authority and the Court upheld this exercise of that power. The PPACA mandates that employers with 50 or more employees provide coverage or pay a penalty... [more]


Court Invalidates Ambush Election Rule
May 18, 2012 - A federal court this week nullified the National Labor Relations Board's ambush-election rule which would allow union representation elections to be held in as few as 10 days after the filing of a union petition...[more]


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Best Practices

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TABC Certification: Protect Your Customers, Your Employees and Your Business with TABC To Go
July 5, 2012 - The Texas Restaurant Association created the first online alcohol seller/server certification program in the state of Texas back in the mid-1990s. Today, our TABC To Go program certifies more than 14,000 individuals each year on responsible alcohol service. TABC certification is a must for any restaurant owner’s risk management program. [more]

Cook Up a Safe Workplace for Teens
June 11, 2012 -Remember your first job? Were you nervous, afraid to ask questions and eager to make a good impression? Your teen workers feel the same way. Consequently, they are at increased risk of getting injured on the job. Here are some tips for instilling safe behaviors that will last teens a lifetime. [more]


Tips for Hiring Teens
May 22, 2102 - Classes are over, school is ending and graduation is near. It’s that time of year again when young adults hit the streets – looking for that summer paycheck. Are you prepared? [more]


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Latest News

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  • TRA Statement on Supreme Court Decision
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