Via Opinion Letter FLSA 2026-13, the DOL recently confirmed that when a manager or supervisor also performs work duties that are typically tipped duties, that manager or supervisor is not entitled to participate in tip pools. The opinion involved a restaurant's "tip out" policy, where servers were required to "tip out" bussers, hosts and bartenders. A shift supervisor performed both bartending duties and managerial duties (scheduling, determining when shifts ended and directing work). According to the DOL, if the shift supervisor satisfies the DOL's definition of a manager or supervisor, participating in the tip pool violates FLSA section 3(m)(2)(B). Managerial status depends on the employee's duties, not their title. The manager does not lose their managerial status when they also perform duties that are typically tipped. The DOL did note that the individual would be entitled to keep tips given to them for services they directly performed. For more information on the deduction for qualified tip income, visit Tax Facts Online. Read More: Link to Q8522.1.