What does your tip-out policy say about you? (Guest Commentary)

Perceived unfairness, reputational cost to bad tip-out policies
By Shana French
|Canadian HR Reporter|Last Updated: 10/22/2013

The pooling and sharing of a portion of gratuities — “tipping out” — is a common practice among restaurants and bars.

Calculated either as a percentage of tips received by a server or of overall corporate sales for a period of time, pooled gratuities have traditionally been shared among servers, bussers, chefs and other restaurant staff.

Increasingly, however, the “house” (the restaurant or bar itself) has begun to take a piece of the action — ostensibly to recuperate breakage costs or monetary errors.