Oregon Tip Out & Tip Pooling Calculator
Calculate server tip-outs, busser cuts, and shift pool distributions customized for Oregon under Oregon Revised Statutes ORS 653.035.
Oregon Labor Law Compliance (Oregon Revised Statutes ORS 653.035): Oregon does not allow tip credits. Employers must pay full state minimum wage ($14.70/hr standard, $15.95 in Portland metro). Back-of-house staff may be included in tip pools if all employees receive full statutory minimum wage. Minimum wage is $14.70/hr. Tip credit is strictly prohibited; employers must pay the full state minimum wage before tips. Managers and shift supervisors are strictly prohibited from sharing in employee tip pools under all state and federal regulations.
Illustrative Busser Tip-Out Example
2% of sales or 15% of tips
Bussers and food runners provide vital dining room support. In Oregon, this range represents common house-policy examples, not a statutory mandate.
Illustrative Bartender Tip-Out Example
7% - 10% of beverage sales
Service bartenders often receive a percentage from servers on beverage rings to compensate for cocktail prep. This represents an illustrative house benchmark, not a legal requirement.
Manager & Supervisor Exclusion Rule
FLSA Restricted (0%)
Under 29 C.F.R. § 531.52(b)(2) and executive duties criteria (29 C.F.R. § 541.100(a)(2)–(4)), managers and supervisors cannot receive or retain any portion of employee tip pools.
Shift Distribution Scenario in Oregon
Here is a practical example illustrating how a restaurant shift might calculate tip-outs and pooling under Oregon wage parameters:
• Server Shift Food Sales: $1,600.00 | Beverage Sales: $400.00
• Server Direct Tips Collected: $380.00
• House Policy: 2% Food Sales to Bussers ($32.00) + 8% Bar Sales to Bartender ($32.00)
• Total Tip-Out Deductions: $64.00
• Server Retained Tips: $380.00 − $64.00 = $316.00
Illustrative Shift Earnings Breakdown (Oregon Statutory Rate: $14.70/hr):
• In Oregon, where tip credits are prohibited, the employer pays the full statutory minimum wage of $14.70/hr directly ($117.60 for 8 hours) in addition to all retained tips ($316.00), yielding an illustrative shift total of $433.60.
Note: This scenario is purely an illustrative calculation example based on hypothetical sales and house-policy benchmarks. It does not constitute legal or payroll advice, nor does it establish regulatory compliance. Tip-credit compliance is evaluated on a workweek basis under applicable federal, state, and local wage regulations.
Common Questions: Oregon Tipping & Pooling
FLSA and Oregon Revised Statutes ORS 653.035 regulatory guidelines for restaurant employers and staff.
Under federal Fair Labor Standards Act regulations (29 C.F.R. § 531.52(b)(2)) and Oregon law (Oregon Revised Statutes ORS 653.035), managers and supervisors cannot receive or retain any portion of employee tip pools. Managerial status is determined by primary executive duties (29 C.F.R. § 541.100(a)(2)–(4)), not merely job titles. The sole exception is when a manager directly and solely serves a customer without assistance from other staff.
In Oregon, tip credits are prohibited under Oregon Revised Statutes ORS 653.035. Employers must pay all employees the full state minimum wage of $14.70/hr directly in cash wages, regardless of tips earned. All gratuities remain 100% the property of the employee.
Under federal FLSA guidelines (29 C.F.R. § 531.54(c)(3)), when an employer claims a tip credit against employee wages, mandatory tip pools are generally restricted to employees who customarily and regularly receive tips. When an employer pays all participating employees the full applicable statutory minimum wage directly without claiming a tip credit, federal rules (29 C.F.R. § 531.54(d)) may permit non-exempt kitchen staff (such as line cooks and dishwashers) to participate in valid tip pools, subject to applicable Oregon and local restrictions.
Common house-policy examples in Oregon often allocate 2% of sales or 15% of tips. These percentages represent illustrative operational examples, rather than statutory mandates.
Tip Pooling Laws & Calculators by US State
Tip credit rules, mandatory pooling guidelines, and minimum cash wage requirements vary across all 50 states. Select your state below for tailored local calculation rules.