Partners Pen Article on What QSRs Need to Know About Tip Pooling

Publication

4.20.23

Partners Courtney Leyes and Emily Litzinger co-authored the third installment of their QSR Magazine column addressing employment law questions specific to the restaurant industry. In this particular article, the hospitality gurus discuss important considerations for tip pooling in quick-service restaurants (QSRs). They explain that although including a tip pool is possible, if done incorrectly, an unlawful tip pool can get employers into trouble in the form of drawn-out wage and hour audits, assessments of civil money penalties, or a potential lawsuit. And they note that “[i]n the last year, there has been a significant uptick in federal and state government agencies’ enforcement of wage and hour laws relating to tip pools and class and collective lawsuits are on the rise.” The co-authors also lay out some recommendations for QSRs considering tip pooling and they stress the importance of setting very clear parameters for any such arrangement.

To read the article visit QSR Magazine.