[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR531.54]

[Page 172]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 531_WAGE PAYMENTS UNDER THE FAIR LABOR STANDARDS ACT OF 1938--Table 
of Contents
 
                        Subpart C_Interpretations
 
Sec. 531.54  Tip pooling.

    Where employees practice tip splitting, as where waiters give a 
portion of their tips to the busboys, both the amounts retained by the 
waiters and those given the busboys are considered tips of the 
individuals who retain them, in applying the provisions of section 3(m) 
and 3(t). Similarly, where an accounting is made to an employer for his 
information only or in furtherance of a pooling arrangement whereby the 
employer redistributes the tips to the employees upon some basis to 
which they have mutually agreed among themselves, the amounts received 
and retained by each individual as his own are counted as his tips for 
purposes of the Act.