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Should Restaurants Share Tips?

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One of the most difficult parts of investing is coming up with profitable stock ideas. For decades, pundits from investor magazines and national newspapers have offered their opinions on the market. While these pundits may sound like experts, their track records have been less than stellar. One study by Stockopedia found that annual share tips consistently underperformed the market.

Whether or not to share tips is a controversial topic. The question has long been debated, with some employers opting to include all of their employees in the pool. Many people will leave during an interview if they do not feel comfortable, so it’s crucial that employers make sure their employees are on board with the tip sharing concept.

A recent change in the law allows restaurant owners to share tips between their tipped and non-tipped staff if the restaurant pays all employees at minimum wage. This change is a major change from previous rules, which prevented restaurants from sharing tips between traditionally tip-earning employees. Some restaurants are already adopting this new practice.

Many restaurants have their own rules regarding how tip sharing should work in their establishment. Many employees feel strongly about one method or another, so it’s important to consult with your employees before making a decision. If you decide to share tips, make sure that all staff members share an agreed-upon percentage of tips.

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