What is a tip out?

A tip out is the practice of distributing a portion of tips earned by an employee to other staff members who may have contributed to the level of service provided. This is common in the service industry, particularly in restaurants and bars, where servers may be required to share a percentage of their tips with bussers, hosts, and bartenders. The amount and distribution of the tip out can vary depending on the establishment and the agreement between the employees. Some restaurants may require a set percentage of sales to be tipped out, while others may leave it up to the discretion of the server. It is important for employees to understand their rights and responsibilities regarding tip outs and to ensure that they are being compensated fairly for their work.