Concern and confusion over tip-sharing agreements at restaurants and other service industry locations where workers customarily receive gratuities have cropped up in the news.

A lawsuit recently filed in Arkansas by a server at a pizzeria highlights the pitfalls common to tip-sharing agreements, reported Arkansas Business. The worker alleges that a tipping pool instituted at her former place of employment deprived her of earnings and spread money gathered by tipped staff to those who normally don't receive any extra funds, like cooks and dishwashers in the restaurant's kitchen.

The suit also claims that the business violated federal tip credit provisions. The suit is seeking class-action status, allowing other service staff who worked at the business to join in.

The Fair Labor Standards Act allows tipping pools under certain circumstances, the foremost being that any such arrangements are voluntary and employers must notify employees of any required contributions that have been established by custom.

The pizzeria denied the former worker's allegations, noting that any tip-pooling activity was voluntary and the server signed a document to that effect.

Employee management software can help businesses track hours worked and money earned with precise detail, possibly lowering legal liability.

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