Tip-Out Policy Generator
Turn your tip split into a written, printable policy your team can sign. It reuses the roles and percentages from the tip-out calculator — no re-typing.
Support roles (from your calculator)
- Bar5%
Describe who splits the remaining pool. Leave blank for “the team”.
Copy pastes clean, unformatted text. Print keeps the letterhead.
Preview
BzzTip-Out & Tip Pool Policy
[Business Name]
This policy explains how tips are shared at [Business Name]. It applies to all tipped shifts and is designed to be transparent and consistent for the whole team.
1. Tip-Outs (Off the Top)
At the end of each shift, the following support roles are tipped out first, as a percentage of total tips:
- Bar: 5% of total tips
These amounts are taken off the top before any remaining tips are pooled.
2. Pool Distribution
Whatever remains after tip-outs is pooled and divided among the team in proportion to the hours each person worked that shift. The pool is divided by total hours to give a per-hour rate, then each person is paid their hours at that rate.
All payouts are calculated to the cent so the shares always add back to the total collected.
3. Eligibility
Managers, supervisors, and owners do not keep or take a share of employees' tips. Tipping rules vary by country and, in the United States, by state — this policy follows the applicable law where we operate.
4. Timing
Tip-outs and pooled tips are reconciled and distributed at the end of each shift.
Acknowledgement
By working tipped shifts, team members acknowledge they have read and understood this tip-out policy.
This document is a template to help set expectations and is not legal advice. Tip-pooling and tip-credit rules differ by country and state — confirm your policy complies with the law where you operate.
Generated by Bzz · bzz-app.com
Saved on this device — edit anytime and reprint.
Tipping rules where you operate
Tip-pooling law differs by country and, in the US, by state. Here’s a plain-English summary for your region — with a dedicated page for each country.
What a good tip-out policy covers
A tip-out policy only works if the team trusts it, and trust comes from clarity. The strongest policies spell out five things: which support roles are tipped out, the exact percentage each receives, whether that percentage is of tips or of sales, how the remaining pool is divided, and who is excluded. The generator above turns each of those choices into a clean paragraph so nothing is left to memory or mood.
Decide the basis first. A percentage of tips is the simplest and rises and falls with the night; a percentage of sales holds steady regardless of how a given server tipped out. Then choose how the pool is shared — most rooms split by hours worked so a double earns more than a single rush, but an equal split can suit a small, steady crew. Whichever you pick, apply it the same way every shift.
Finally, write down who does not share tips. In much of the world, managers, supervisors and owners are restricted or barred from a tip pool, so stating the exclusion protects both the team and the house. Keep the document short, put a date on it, and have staff acknowledge it — the printable version below leaves a signature line for exactly that.
Fair tips start with a smooth shift
Bzz is a free digital buzzer for restaurants and bars. Guests scan a QR code, track their spot from their phone, and get pinged when their table’s ready — so you turn tables faster and your team earns more to share.
Questions
- What is a tip-out policy?
- A tip-out policy is a short written document that sets out how tips are shared at your restaurant or bar: which support roles are tipped out off the top, what percentage each gets, how the remaining pool is split, and who is (and isn’t) included. Putting it in writing keeps the team clear and consistent — and in some countries it’s now a legal requirement.
- Do I have to re-enter my staff and percentages?
- No. If you used the tip-out calculator on this site, the generator reuses the roles and percentages you already entered — they’re stored in your browser. Just add your business name and house rules and the policy fills itself in.
- Should a tip-out policy be based on a percentage of tips or of sales?
- Both are common. A percentage of tips is simplest and moves with how good the shift was; a percentage of sales ties the tip-out to volume regardless of how much any one server earned. Pick one, state it clearly in the policy, and apply it consistently.
- Is a written tip-out policy legally required?
- It depends on where you operate. In the UK, the Employment (Allocation of Tips) Act 2023 requires a written tipping policy. Ireland requires a displayed tips notice. The US and Canada regulate who can share in tips rather than mandating a document. This tool shows the rules for your region and links to a dedicated page for each country.
- Can managers or owners take a share of tips?
- In many places, no. US federal law bars employers, managers and supervisors from keeping employees’ tips or joining a tip pool; Ontario’s rules generally stop owners and directors from sharing a pool. The generator can state this exclusion for you, but always confirm the rules where you operate.
- How do I copy or print the policy?
- Use “Copy policy text” to put clean, unformatted text on your clipboard — paste it into an email, a staff handbook, or a Word doc. Use “Print policy” to print or save a PDF that keeps the Bzz letterhead and formatting.