Which employees performing some managerial tasks may join a tip pool

STATE OF NEVADA
JOE LOMBARDO DR. KRISTOPHER SANCHEZ
Governor Director

                                                                                                             BRETT K. HARRIS. ESQ.
                                                                                                               Labor Commissioner




                          DEPARTMENT OF BUSINESS AND INDUSTRY
                    OFFICE OF THE LABOR COMMISSIONER

August 12, 2025

Via Email and U.S. Mail

Jason Hicks
Greenberg Traurig, LLP
10845 Griffith Peak Drive, Suite 600
Las Vegas, NV 89135
[email protected]

   Re: Request for Advisory Opinion—Tip Pooling Policy

Dear Mr. Hicks,

   Pursuant to Nevada Administrative Code ("NAC") Section 607.650, an Advisory Opinion

has been requested clarifying which employees that perform some managerial tasks may be
included in a tip pooling policy.

                                              FACTS PRESENTED

   In your Request for Advisory Opinion, you pose the following question and present the

following facts:

             The Fair Labor Standards Act ("FLSA") prohibits managers or supervisors
             from keeping tips or receiving tips from a tip pool, regardless of whether
             they are engaged in tip-producing work. See 29 C.F.R. § 531.54. Under
             Nevada law, tip pool policies are permissible, so long as the employer and
             managerial employees do not keep any portion of the tip for themselves. See
             N.R.S. 608.160(2): see also Wynn Las Vegas, L.L.C. v. Baldonado, 129
             Nev. 734 (2013). What is unclear is whether employees who do not qualify
             as managers or supervisors under the FLSA or Nevada law, but perform
             certain managerial or supervisory tasks, may to any extent lawfully
             participate in a tip pool with other hourly, non-exempt employees. We
             respectfully request that the Office of the Labor Commissioner provide
             guidance and an advisory opinion on the following question:

      Whether under Nevada law, an hourly, non-exempt employee who performs
      some managerial tasks-but does not have the ability to hire, fire, discipline,
      schedule, or otherwise set the working conditions of other employees-may
      be included in a tip pool for a pro-rated amount corresponding to the
      percentage of non-managerial tasks performed.

[The request letter includes several pages of additional background not preserved in extracted
text (the source PDF's pages 2-4 render with only the letterhead/footer and no body text between
the Facts Presented section above and the Legal Authority section below); the Advisory Opinion's
own analysis below fully states the OLC's answer.]

                                              LEGAL AUTHORITY

NRS 608.160 Taking or making deduction on account of tips or gratuities unlawful;
employees may divide tips or gratuities among themselves.

1. It is unlawful for any person to:

(a) Take all or part of any tips or gratuities bestowed upon the employees of that person.

(b) Apply as a credit toward the payment of the statutory minimum hourly wage established

by any law of this State any tips or gratuities bestowed upon the employees of that person.

2. Nothing contained in this section shall be construed to prevent such employees from

entering into an agreement to divide such tips or gratuities among themselves

                                                       ANALYSIS

    NRS 608.160(2) clearly does not preclude employees from pooling tips between

themselves. There are no provisions in the statute that exclude certain employees from
participating in tip-pooling due to their position title, position description, or position duties
whether they are managerial or supervisory in nature or not. NRS 608.160(1)(a) makes it clear that
employers may not take all or any portion of the tips from their employees.

   Nevada case law permits mandatory tip pooling by employers. Employers may include

employees in different positions and ranks in mandatory tip pools. However, the employer may
not keep any portion of the tips for itself. Wynn Las Vegas, L.L.C. v. Baldonado, et al., 129 Nev.,
Advance Opinion 78 (Oct. 31, 2013).

    Although the Nevada labor laws do not preclude employees in management or supervisory

positions from participating in tip-pooling, employers must still ensure proper compliance with
Federal requirements. The Labor Commissioner recommends you refer to the U.S. Department of
Labor for further guidance related to this matter under the Fair Labor Standards Act (FLSA)
requirements.

    Please be advised that this Advisory Opinion is limited to the specific facts and

circumstances described herein. The Office of the Labor Commissioner may revisit this issue
through the Administrative Rulemaking Process. Please be further advised that subsequent
statutory or administrative rule changes or judicial interpretation of the statutes or rules upon which
any opinion is based may require that this Advisory Opinion be modified or abandoned. Should
you need additional clarification, please do not hesitate to contact our office at (702) 486-2650.

Sincerely,

Brett K. Harris, Esq.
Labor Commissioner