Tips, Tip Pooling and Service Charges

Aren’t tips, tip pools, service charges and surcharges all different things?

Yes and no. Each has its own legal rules and risks, but there is a crossover. A mandatory tip out is a tip pool. A surcharge may qualify as a service charge. Failing to understand and properly account for the differences can be costly. We’ve compiled this toolkit with important and up-to-date resources for operators with questions about tip pooling and service charges.

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