Information about employees who earn tips
In Minnesota, no employer may take a tip credit against either the state or federal set minimum wage, whichever applies to the employee.
Tips are property of the direct service employee (employees who directly receive tips, such as servers or hairstylists). Employers cannot require employees to share their tips with indirect service employees (employees who do not directly receive tips, such as bussers, dishwashers, cooks and hosts).
What is tip pooling?
Tip pooling is when direct service employees pool tips together and then split tips amongst themselves.
What is tip sharing?
Tip sharing is when direct service employees share tips with indirect service employees.
When is tip sharing legal?
Tip sharing is legal when direct service employees decide for themselves to share their tips with indirect service employees.
Employers cannot have any involvement in tip sharing, other than:
- reporting the amounts received, for tax purposes; and
- posting a copy of the law about tip sharing for employee information.
When is tip pooling legal?
An employer may pool tips together for direct service employees in situations where more than one direct service employee is serving the same customer, guest or patron, as long as all gratuities are shared only among direct service employees.
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