Income & Work

What Is Tip Pooling?

Tip pooling is an arrangement in which tips received by several workers are combined and then divided among eligible staff according to a set rule, such as hours worked, a points system, or equal shares. It is common in restaurants, bars, and hotels.

Splitting by Hours

Each worker's share = total tips × (that worker's hours ÷ total hours worked by everyone in the pool).

Legal Rules

Who may be included in a tip pool is regulated in many places. In the United States, federal law restricts managers and supervisors from keeping employees' tips, and some states add their own rules.

🧮 Calculate It Yourself

Put Tip Pooling into practice with these free calculators — no sign-up, nothing stored.

🤝 Tip Pool Calculator Split a shared tip pool fairly by hours worked, or evenly. Calculate → 🧾 Tip Calculator Calculate tip amount and split the bill between any number of people. Calculate → 🧾 Bill Split Calculator Split rent, groceries, or any shared bill unevenly by percentage. Calculate →

🔗 Related Terms

Hourly Wage Gross Income

More Income & Work Terms

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.