By Menu & Margin editorial team · Published · Updated
People
People: payroll, scheduling, and tips
Hiring, scheduling, payroll, tip pooling, and the labor basics every independent owner should check with counsel—not guess.
Labor and tip rules are jurisdiction-specific. This page is a practical checklist, not legal advice. Confirm tip pooling, overtime, and youth employment rules with counsel or a qualified payroll provider for your locations.
What is the People section?
Hiring, scheduling, timekeeping, payroll, tip management, and the HR paperwork that prevents avoidable disputes.
How to cut labor cost without torching service
- Compute labor $ ÷ sales for four closed weeks (include employer taxes/benefits).
- Overlay sales by hour vs. scheduled hours; cut dead dayparts before cutting people.
- Separate OT and training from steady floor labor.
- Publish swap/call-out rules; freeze the schedule 48–72 hours out.
Running better → Labor cost · Scheduling chaos · Labor calculator.
Hiring & onboarding
- One job description and pay type per role before you post (hourly vs. salaried, tip-eligible or not).
- Own I-9 timing; know who runs E-Verify if you use it.
- Training checklist signed before solo shifts—especially alcohol service and allergens.
- First-week buddy + manager check-in; don’t leave new hires alone on a rush.
Scheduling without chaos
- Collect availability once; stop renegotiating every Tuesday.
- Publish swap/call-out rules (who approves, by when); freeze the schedule 48–72 hours out.
- Build the week from sales-by-hour, not last week’s copy-paste.
- Add scheduling software after the paper process is honest—see scheduling triage.
Tips & labor-law basics
- Write tip pooling / tip-out policy before the first Friday night; put it in onboarding.
- Federal wage-and-hour overview: U.S. DOL Wage and Hour Division.
- California example portal: California DLSE.
- Post required notices; don’t rely on a Facebook group summary.
- Confirm overtime, meal/rest breaks, and youth rules with counsel or your payroll provider for each location.
Tool picks
7shifts vs. Homebase Scheduling comparison with dated public pricing. Restaurant payroll software Gusto, Toast Payroll, Square, Homebase, and peers.
Frequently asked questions
- How do I cut labor cost without wrecking service?
- Compute labor ÷ sales for four weeks, overlay sales-by-hour, and cut dead dayparts before headcount. Freeze the schedule 48–72 hours out, then evaluate scheduling or payroll tools.
Product pages
7shiftsScheduling & restaurant HR HomebaseHourly scheduling & HR GustoPayroll & HR ADPPayroll (quote-led) ToastIncludes Toast Payroll option SquareIncludes Square Payroll
Toast Payroll (affiliate)
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Learn about Toast Payroll