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How to split tips fairly

Updated October 20265 min read

Most restaurants and bars use one of three methods. Pick one, write it down, share it with staff, and apply it the same way every pay period.

1. By hours worked

Each person gets pool × (their hours ÷ total hours). It's simple and transparent, and works when everyone in the pool does similar work.

Example: $1,000 pool. Ana worked 30h and Ben worked 20h, so Ana gets $600 and Ben gets $400.

2. By points (role weights)

Assign points per role, for example server 1.0, bartender 1.0, busser 0.5, runner 0.5. Each person gets pool × (their points ÷ total points). This works for a single shift where everyone worked the same hours.

3. By hours × points

The most common method for a full pay period. Each person's weight is their hours times their role's points.

Example: A busser working 20h at 0.5 points has a weight of 10. A server working 20h at 1.0 has a weight of 20. The server gets twice the busser's share.

Rules your method has to follow

Always

Federal requirements

  • No managers or supervisors in the pool
  • Distribute 100% of the pool
  • Pay out at least as often as wages
If you take a tip credit

Extra limits

  • No cooks or dishwashers in the pool
  • Only customarily tipped staff share
  • Cash wage + tips must reach minimum wage

Split your pool with these rules checked for you.

Free calculator. Runs in your browser. Nothing uploaded.

Try it with a sample team →

Keep reading

Can managers be in a tip pool?Who counts as a manager under the FLSATip pooling laws by stateTip credit bans and state rules

General information about U.S. federal law (FLSA, 29 U.S.C. §203(m)) and selected state and city rules as of October 2026. Not legal advice. Check your state labor department or an employment attorney before changing your pay practices.