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tipout percentage allocation laws Illinois

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  • tipout percentage allocation laws Illinois

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    Although this appears to be somewhat of a recurring question, I have an inquiry I was wondering if anyone could assist me with. I too have worked for an extended period of time under a 3% tipout rule, where 3% of my sales were deducted after every shift and allegedly split between the host/bussers and the bartender. The hosts/bussers were paid a set hourly pay kept at minimum wage, while bartenders were paid $7.50 an hour plus an average of about $3 an hour from the tipout, which I think was said to account for 1% of the total tipout. In reference to the hosts/bussers, management claimed that their allocated tipout was the amount of money which took them from restaurant minimum wage to the standard minimum wage made by a regular worker outside of the restaurant industry. Due to the fact that I was tipping out anywhere from $10 to $20 a shift, even on nights when there was no host/bussers there to assist servers (hosts/bussers were only scheduled for weekend shifts), I find it hard to believe that all of these tips were being allocated to the proper parties. We were told that we were required to tipout in absence of hosts/bussers because it all evened out through the weekly pay schedule. So enough with the backstory. Are there any regulations that require management to show where tips are allocated? Also, can one be required to tip out on shifts where there is no host/busser even available? I can assure you the bartenders never received than their standard 1% as I bartended as well, and host/bussers never received more than the standard minimum wage. One manager went so far as to claim that one of the owners described the tipout as more of a "tax" for servers than an actual gratuity splitting mechanism. Sorry for the long post. I am from Illinois if that makes any difference.

  • #2
    No, there is no law that requires management to show employees how the tip pool is allocated.

    All I can tell you is what the DOL fact sheet says about tip pools.
    http://www.dol.gov/esa/whd/regs/compliance/whdfs15.pdf
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      You may want to use this IRS form to records your tipped out amounts

      http://www.irs.gov/pub/irs-pdf/p1244.pdf
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