Tip sharing arrangement
Workers who receive tips can agree on how to distribute tips through what is called a "tip sharing arrangement", which can be verbal or written.
An employer cannot impose the sharing of tips in his or her establishment nor intervene in the setting up of a tip sharing arrangement. However, the workers can ask the employer to apply the rules and distribute the tips among the workers taking part in the arrangement.
Establishing a tip sharing arrangement
When establishing a tip sharing arrangement, the workers who receive tips are advised to precisely determine the arrangement criteria. The following main points need to be clarified:
- the percentage of tips that the workers who receive tips agree to give to the other workers of the establishment
- the name of the person in charge who will redistribute the tips
- the frequency of tip redistribution (each day, week or pay period)
- the duration of the agreement
- the name and position of each participant.
The arrangement applies only if the majority (50% + 1) of the establishment's workers who receive tips accept and sign the arrangement. Only they can make any changes to it. A model tip sharing arrangement is available.
A worker receiving tips who is hired in an establishment that has a tip sharing arrangement must participate in it. Such participation can be a condition of employment.