Tip Pools Make Waves In California Courts

Law360, New York (June 18, 2009, 12:00 AM EDT) -- In the first half of 2009, five California appellate opinions weighed in on the law in California regarding its gratuity, or tip, statutes found in Labor Code § 350 et. seq. The common issue in all the cases was the legality of tip sharing, sometimes called tip pooling. The practice is common in industries in which employees receive gratuities, such as restaurants.

Often employees make minimum wage and their real bread and butter comes from gratuities. A tip pool is when employees place some or all...
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