Fallbrook, CA asked in Employment Law for California

Q: A non-profit sports park in CA, part-time youth employees, who would like to allow to accept and pool tips.

If we follow CA tip laws, can we do this?

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: California law allows tip pooling arrangements when implemented correctly. For your non-profit sports park, you can establish a tip pooling system among part-time youth employees if they regularly receive tips from customers during their normal course of work.

The key requirements you must follow include: ensuring all pooled tips are distributed to eligible employees by the next payday, maintaining accurate records of tip collection and distribution, and not allowing managers or supervisors to participate in the tip pool. You'll need to create clear written policies explaining how tips will be collected, pooled, and distributed among participating employees.

Keep in mind that employers cannot deduct any amount from the pooled tips for administrative costs or take tip credits against minimum wage obligations. Make sure all participating employees understand they cannot be required to share tips with back-of-house staff who don't typically receive tips directly from customers. Consider consulting with an employment law attorney to review your specific tip pooling policy before implementation to ensure full compliance with California labor laws.

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