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Settings > Tip management › Policies
Permission requirements
To create tip policies, you must be either:
An Administrator, or
A Manager with the Manage tip policies permission
Your company must also have the tip management add-on enabled.
Before you start
Ensure your positions are set up. Contributors and recipients are chosen by position, so a policy is only as useful as your position list.
Policies are built one location at a time. If you run tip pools the same way across several locations, plan to repeat these steps for each one.
Tip pooling rules vary by state and city, and some roles are excluded from pools in certain jurisdictions. Check your policy against local labor law — or with legal counsel — before publishing.
Create a new tip policy
Navigate to Organization > Tip management > Policies.
If you have multiple companies, use the location selector near the top to make sure you're working in the right one. Then select Create policy in the top right.
2. Choose how tips get pooled
First, enter a name for the tip policy.
Next, under Intervals, pick the window of time tips get pooled across.
Full workday
Pools tips across everyone clocked in during the whole workday.
Daypart **Coming soon**
Pools tips only among people who worked the same part of the day — e.g. breakfast, dinner.
Order **Coming soon**
Allocates tips based on who's clocked in when the order is placed, when it's closed, or across the time in between.
Then set Active days - the days of the week this policy applies to. If it applies to all days of the week, check Every day.
3. Set the distribution method
The distribution method decides how the pooled tips get divided across positions, before any individual worker sees a share:
Percentage (each position is assigned a share of the tip pool)
Equal distribution (tips are split evenly across all positions)
Points model (tips are split based on a points value assigned to each position)
4. Set the split method
The split method decides how a position's share then gets divided among the individual workers who filled it that day.
Hours worked splits proportionally to hours clocked.
Equal split divides it evenly regardless of hours.
Example:
A tip pool is created for full day on Sundays. It has an equal distribution method between bartenders and barbacks, with tips then split between individual workers based on hours worked.
John and Sam work on Sunday as bartenders. John works 5 hours; Sam works 10 hours.
Matt and Lucas work on Sunday as barbacks. Matt works 3 hours; Lucas works 6 hours.
There is $300 in the tip pool to be distributed.
As the distribution method = equal split, bartenders get 50% of the tips ($150), and barbacks also get 50% of the tips ($150).
Sam gets $100 of the bartender tips. John gets $50. (Proportional to the individual hours worked).
Lucas also gets $100 of the barback tips; and Matt gets $50 (again, proportional to the individual hours worked)
5. Choose who contributes and who receives
Contributors are the positions that pay into the pool.
Select a position, set what percentage of their tips it contributes, and choose which tips that applies to (i.e. cash tips, credit tips).
Select Add a contributor + for each additional position.
To define which tip types are available to be pooled, navigate to Tip management > Settings.
Recipients are the positions that get paid out of the pool.
Add each one and set its share. The share type will be different based on the distribution method selected. For example, if percentage was selected then a percentage will need to be entered against each position.
At least one contributor and one recipient must be defined.
6. Publish the policy
Once all sections are complete, select Publish in the top right.
Choose the date the policy will take effect from. A date up to 28 days in the past can be selected.
Click Publish to save.
The tip policy will now be visible on the Policies screen.
Good to know
Tip policies run in the order they appear on the Policies screen. If pools overlap, tips are only allocated once — the policy listed higher takes priority.