I am a server at a four star steakhouse in dfw. Our tip out is 25% of our tips. This is distributed to bartenders, food runners, bus boys, hostesses.....and our assistant managers. Is it illegal for the company I work for to pay their assistant managers an hourly wage and make up for that by giving them a percentage of the tip out? Is it also illegal that the bulk of the hostesses wage is based on the server tip out?

The first thing that struck me in your post was that you are tipping out 25% into the pool. Now, this isn't my industry, but required tip-outs must be "reasonable and customary". That sounds like a very high percentage to me.

Depending on what the assistant managers actually do, it's unlikely they could legally be allowed to benefit from a tip pool. Contact the Texas Workforce Commission or the federal Dept. of Labor to confirm.

Agree with Patty. 15% maybe but not 25% & I'm not sure an asst. mgr. would share in a tip pool either (though possibly depending on duties). Contact the TWC or fed. DOL as suggested.