Compliance & E&O Insurance — Built-In Protection for Every Distribution

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.

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.

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.

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.

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.