The Role of Tip Sharing: How Servers and Cooks Are Compensated

The Role of Tip Sharing: How Servers and Cooks Are Compensated

Restaurant tip sharing policies vary widely between establishments, but a common approach involves distributing tips among front-of-house staff like servers and back-of-house staff like cooks. Understanding these policies and their implications can help servers, cooks, and management ensure fair and equitable distribution of tips across all roles.

Common Tip Sharing Policies

Typically, servers receive a larger share of the total tips, often around 60-80% of the total. This percentage reflects their direct interaction with customers and the service they provide. Conversely, cooks and other back-of-house staff receive about 20-40% of the total tips, acknowledging their role in preparing the food and supporting the overall dining experience. The exact percentages can vary based on the restaurant's policy, the size of the team, and the specific arrangements made among staff.

Example from Washington State

At our restaurant in Washington State, servers tip 15% Monday through Friday and 17% on weekends. Tips are calculated per day and divided among all who contributed during that period. If someone did a poor job, they are removed from the tip pool for that day. Additionally, a small amount is set aside daily, and once accumulated, it is used for a "no-tip-out" day, which is generally welcomed by servers.

Legal Considerations and Actual Practices

In California, where I have worked, practices like tip sharing are legally recognized. In one instance, we counted all cash tips at the end of each business day and divided them by the total number of hours worked to calculate a “tips per hour” rate. This rate was then applied to all staff involved. For example, if we earned $500 in tips on a particular day, and we had 8 shift employees (4 day, 4 night) working 8 hours each, the staff would earn approximately $7.80 per hour in tips. This amount, rounded down to the nearest dollar, would be added to each employee's paycheck.

Examples of Tip Sharing in Action

Pettings and dividing tips based on hours worked or sales generated are common strategies. At the restaurant I worked in, we divided tips based on hours worked. If we made $500 in tips, each of the 8 employees who worked 8-hour shifts received $62.00, leaving $4 unallocated for the next day’s tips. We kept these leftover tips in a jar to remind customers that they could still tip at their discretion.

Restaurant-Specific Tips and Practices

In some restaurants, there are agreements for tip sharing, such as a 10% portion of bar sales allocated to staff. While this can be seen as less fair and technically not enforceable, it often leads to longer wait times for tables ordering bar drinks. It's advisable to clarify these policies with the establishment before assuming they apply.

Alternatives to Traditional Tip Sharing

If tip sharing is not practiced, or if you find the traditional methods uncomfortable, there are alternative ways to show appreciation for the staff's hard work. You could bring a case of beer or ask if you can buy them something from the bar. Most restaurants would be happy to have you pay for a drink that gets 'rung in' but isn't prepared until the shift is over and cleaning is completed.

Conclusion

Understanding and knowing the specific tip sharing policies in your restaurant can help ensure fair compensation for all staff. Whether following state regulations or specific restaurant practices, it's essential to be aware of how tips are distributed to maintain a fair and harmonious working environment.