Tip Credit Calculations
Automatic calculation of federal minimum wage + tip credit per state law. Updates automatically when laws change.
INVENTED · PATENTED · PROVEN · SINCE 2009
Compliance & E&O Insurance — Built-In Protection for Every Distribution
Compliance isn't a feature we added. It's the foundation we built on.
45+ States. Complete Coverage.
GratShare automatically applies tip law rules for every state in the United States.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
District of Columbia
What's Automated
Every aspect of tip law compliance is built into your distribution logic.
Errors & Omissions Insurance
Unique in the industry: E&O insurance transfers liability from you to Gratuity Solutions.
Liability Protection
E&O insurance coverage transfers liability for calculation errors from your operation to Gratuity Solutions. If there's ever a tip distribution error due to our system, you're covered. This is unique — competitors can't offer this because their systems require manual input.
Full coverage for distribution calculation errors
Protects against wage claims stemming from system errors
No deductible for our system errors
Automatic coverage — no additional forms needed
Proof of coverage for audits and disputes
Why teams switch
The Compliance Advantage
See how automated compliance stacks up against manual processes.
AI-Enhanced Compliance Validation
Claude AI agents verify every distribution against applicable state laws.
Compliance Verification
AI independently confirms every distribution meets applicable state tip laws and company policies before finalization.
Edge Case Detection
AI identifies unusual distributions that might pass automated checks but warrant manager attention for compliance reasons.
Audit Trail Verification
AI validates that every distribution has complete documentation sufficient to defend against wage claims or audits.
Frequently Asked Questions
What is Errors & Omissions Insurance?
E&O insurance is professional liability coverage that protects your business from financial loss due to mistakes made by a service provider. In this case, if Gratuity Solutions makes a calculation error in tip distribution, our E&O insurance covers the resulting liability, protecting your operation from wage claims or legal exposure.
How does automatic compliance work?
Every state has different rules about tip credits, pooling, overtime, and service charges. Instead of managers manually tracking these rules, GratShare stores the rules for all 45+ states and automatically applies them to every distribution. When state laws change, Gratuity Solutions updates the rules — your system stays compliant without any action needed.
Which state tip laws are covered?
All 50 states plus DC are covered, including variations for major cities (e.g., California state vs San Francisco local rules). Coverage includes federal minimum wage + tip credit rules, state-specific pooling restrictions, overtime treatment of tips, service charge rules, and record-keeping requirements.
How quickly are law changes updated?
Gratuity Solutions monitors tip law changes and deploys updates to all customer systems automatically. Most changes are deployed within 48-72 hours of becoming law. You'll receive notification of any changes that affect your operations.
What happens if there's a compliance violation?
The Intelligent Alarms system flags any distribution that would violate state law before it processes. The distribution is held for manager review with a detailed explanation of the violation. Managers can either correct the underlying issue or contact Gratuity Solutions support for guidance.
