How does a tip out work?
At the end of the shift, a bartender gives a set share of their tips, or of their sales, to the barback who kept the bar stocked. The share is set by house rules, not by the person tipping out.
Tip out vs tip pool
With a tip out, each person pays a share to the people who supported them. With a tip pool, everyone's tips go into one pot that is split by hours or by points.
Who can't receive a tip out?
Under federal law, managers, supervisors and the employer can't keep any part of staff tips, whether directly or through a tip out. Some states have stricter rules about who can share.