The answer to this question depends partly on how the owner compensates him or herself and how the owner records tips on his or her taxes.

Where employees practice tip pooling (or splitting), e.g. where waiters give a portion of their tips to the busboys, the money is counted as tips for each individual who receives it. According to the agency which regulates labor in the United States, the Federal Department of Labor, employees must regularly receive more than $30 a month in tips to be considered tipped employees.

Employers may pay $3.00 less per hour to tipped workers in direct wages. But, all employees must earn at least minimum wage regardless of whether they are tipped or not. So if an employee is not earning enough in tips plus their direct wages to equal the minimum wage of $6.75, then the employer must pay the employee the difference. In essence, all workers must earn at least $6.75 including tips. Also, employees must keep all of their tips, except if they participate in a tip pooling or sharing arrangement. For more information, visit the United States Department of Labor.

See also the answer to SpeakUp Question #10853.