LOS ANGELES - s4story -- Tip management is one of the most legally complex parts of restaurant operations. Federal FLSA tip credit rules, state-specific tip pooling regulations, and IRS reporting requirements all intersect - and a single misstep can mean wage-and-hour lawsuits or DOL audits. In 2026, restaurants are using SmartShifts to automate it end-to-end.

SmartShifts handles tip tracking and distribution as part of its all-in-one employee management platform. The system manages tip pools, distribution rules, and tip credit calculations alongside scheduling, time clock, and labor compliance - keeping tip data connected to the operational data that drives it.

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The platform's built-in labor regulation database covers tip credit compliance alongside overtime regulations, break and meal period requirements, predictive scheduling laws, minor work restrictions, and split shift rules. SmartShifts integrates with the point-of-sale, payroll, and HR software restaurants already use.

Learn more at https://smartshifts.com.