Tip Pooling

Tip pooling is the practice of combining tips collected by staff into a shared pool and dividing them among a group of employees by an agreed formula.

A tour company might split a day’s tips among all guides on a shift by hours worked, or share them with support staff such as drivers and photographers. Federal and state labor rules limit who can take part in a tip pool, and managers and owners are generally excluded.

Why it matters for operators

A clear, documented tip policy builds trust with seasonal staff. Make sure your booking and POS systems report tips accurately by date and employee.

This definition is general information, not legal advice. Check federal and state labor rules for your business before setting up a tip pool.

Related terms

• Employee scheduling

• Financial reporting

• Point of sale (POS)