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TinyBizTools

Tip Pooling Calculator

Calculate fair tip distribution based on hours worked. Free tip pooling calculator for restaurants — divide tips proportionally by shift hours.

$

Employees

1 employee
hrs
💰

Ready to calculate

Add employees and enter tips above to see the distribution.

How to Use This Tip Pooling Calculator

  1. Enter total tips — the total tip pool amount for the shift or period.
  2. Add each employee — enter their name and hours worked during the tipping period.
  3. See the distribution — tips are divided proportionally by hours worked.
  4. Add or remove employees as needed for each shift.

How Tip Pooling Works

This calculator uses the hours-based method — the most common and legally straightforward approach. Tips are distributed in proportion to hours worked:

The Formula

Total Hours = Sum of all employees' hours worked
Hourly Tip Rate = Total Tips ÷ Total Hours
Employee Share = Employee Hours × Hourly Tip Rate

Example: A Friday dinner shift collects $480 in tips:

EmployeeHoursTip Share
Sarah (server)6h$180
Mike (server)4h$120
Tom (busser)3h$90
Lisa (bartender)3h$90
Total16h$480

Hourly tip rate: $480 ÷ 16h = $30/hr

Tip Pooling vs Tip Sharing — What’s the Difference?

Tip PoolingTip Sharing
How it worksAll tips go into one poolServers keep tips, share a %
DistributionFormula-based (hours, points)Individual server contributes
Who participatesAll eligible staffSupport staff receive from servers
Common inFull-service restaurantsCasual and fine dining

Frequently Asked Questions

Is tip pooling legal?
Tip pooling is legal in the US under the Fair Labor Standards Act (FLSA), but with restrictions. Managers and supervisors generally cannot participate in tip pools. The rules vary by state — some states have stricter requirements. Always consult your state labor board or an employment attorney for compliance.
Generally, employees who "customarily and regularly receive tips" can participate — servers, bartenders, bussers, food runners, and hosts. Back-of-house staff (cooks, dishwashers) may be included if the employer pays full minimum wage (not tipped minimum wage).
No — managers and supervisors are prohibited from participating in tip pools under FLSA. Even if they occasionally perform tipped work, their managerial status disqualifies them from the pool.
Tip pooling combines all tips into one pool and distributes them based on a formula (like hours worked). Tip sharing is when individual servers contribute a percentage of their own tips to support staff (bussers, bartenders). Both are common; this calculator handles the tip pooling method.
If your employer has a mandatory tip pool policy, generally yes — as long as it complies with applicable law. Employers who pay the full cash minimum wage (not tipped minimum) can require tip pooling among all non-supervisory employees.

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