Do digital tips go to workers?

Usually, but the path from the tablet to a paycheck has more stops than a cash tip, and each stop is where reports of problems cluster. A digital tip is typically collected by the payment processor, recorded by the point-of-sale system, and paid out through payroll, sometimes days or weeks later.

The questions that decide it

• Card fees: federal law permits (some states prohibit) deducting a proportional card-processing fee from a card tip before payout.
• Timing:digital tips generally must be paid by the regular payday for the period: “we're holding tips until next month” is worth a record.
• The prompt itself:on app platforms, what the checkout screen calls a “tip” and what reaches the worker are set by the platform's published policy; the record for each platform is on its brand page here.
• Pooling: a digital tip can lawfully land in a tip pool; who is in that pool is its own question (see our managers guide).

Laws vary by state and province, and this isn't legal advice: for your situation, contact your local labor authority or an attorney.