Section 6.3: Employee Classes

Section 6.3: Employee Classes

Many employees play different roles in a restaurant. You may find yourself with a waitress who is also a counter cashier or assistant manager depending on the needs of your business on any given day. Using Employee Classes allows these individuals to clock-in as "Wait Staff", "Cashier", or "Assistant Manager" (or anything else you come up with) to help you with payroll and a more clear understanding of what your staff is doing.

Employee Classes allow you to:

  • Accurately track labor hours and cost,
  • Manage your schedule,
  • Create tip out rules if you have tipped employees who pay a percentage of their tips to support staff, and
  • withhold a portion of your servers' credit card tips to cover the cost of the transaction fee incurred by adding the tip.

You will need to complete the following tasks in order to best take advantage of the employee class functionality in your Lavu POS system. 

  • Create employee classes without tip out rules
  • Create employee classes with tip out rules
  • Withhold transaction fee from credit card tips
  • Adjust tip out settings (if using tip outs
  • Assign employee classes to users in your system

Creating Employee Classes

Employee classes allow you to ensure that you have the appropriate staff scheduled for each shift, track labor hours more accurately, and design specific tipping rules.

The first decision you should make is whether or not you will use Lavu’s tip out calculation feature. It’s easiest to begin by creating all of your employee classes that will not pay tip outs if you are using tip out calculations. We recommend that you start by building employee classes for your Back of House (BOH) staff and support staff such as host/hostess, cashiers, and bar backs.

The first set of instructions will guide you through the process of creating an employee class without tipping rules.

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 Create an Employee Class without Tip Out Rules

NOTE: 

You need to enable a setting in Advanced Location Settings called Prompt servers to enter tip out amounts before printing Server Summary in addition to completing the steps below. Directions on how to do so are written at the bottom of this article. 

  1. Login to your Lavu Control Panel
  2. Navigate to Settings > Users / Customers > Employee Classes
  3. Click the ADD NEW button
  4. Type in the employee class Title (e.g. Host/Hostess) 
  5. Select either FOH (Front of House) or BOH (Back of House) from the Type  dropdown
  6. Click SAVE

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Repeat this process until you have created all of your support staff or, all of your staff if you are not applying tipping rules.

Tip Out Rules and Employee Classes

Tip Out Rules: Ensuring Your Support Staff is Tipped Appropriately

You can use your different employee classes to more effectively set tip out rules for your team. This makes tip sharing easier and eliminates needless arguments among staff. You can set your tip out rules based on a variety of parameters.

  • Your servers can tip out supporting staff based on only cash tips, only card tips, or cash and card tips.
  • You can now also set tip out rules based on the total sales made by each server or by sales made by each server in a particular super group. For example, you can set your server to tip out 10% of their alcohol sales to your bartender (this would require that you create a super group to track alcohol sales).
  • You can divide the tipout percentage among several employees working in the same class evenly or by hours worked using the Tipout Breakdown option. This means, for example, that designating a tipout percentage of 10% would subtract 10% of the server's tips and split that 10% between the employees who are clocked in as the tipped-out employee. Choosing to not use this option will grant each tipped-out employee 10% of the server's tips.

In this image, the employee class ‘Server’ will tip out 5% of their total tips to the host/hostess and to the cooks (red box). They will also tip out 10% of their alcohol sales to the bartender (blue box). Both tipout options are also split by hours worked, meaning that 5% of the Server tips will be split between the participating employee classes based on hours worked.

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The following instructions will guide you through the process of creating an employee class for employees who are directly tipped and who will pay tip outs to support staff. The instructions include direction regarding building tipout rules along with the class.

 Create an Employee Class with Tip Out Rules

  1. Login to your Lavu Control Panel
  2. Navigate to Settings > Users / Customers > Employee Classes
  3. Click the ADD NEW button
  4. Type in the employee class Title (e.g. ‘Server’)
  5. Select either FOH (Front of House) or BOH (Back of House) from the Type  dropdown (You should select FOH as this is a tipped employee which generally means they work the front of house.)
  6. Enter the percentage amount for the first tipout rule in the first % box
  7. Click on the first blank drop-down to the right of the % box to select the first employee class to receive this percentage of the tip out
  8. OPTIONAL: Click on the second blank dropdown if more than one employee class will receive the same percentage of tipout
  9. Click on
    1. Tips and then select the appropriate tips to track below that box (Total Tips, Cash Tips Only, or Card Tips Only) OR
    2. Click on SALES and select either All Sales or Super Groups  and then the appropriate Super Group
  10. Leave the Tipout Breakdown option blank or select either Evenly or Hours Worked, depending on your business rules
  11. Click SAVE

Withhold, or 'Refund', Transaction Fees from Credit Card Tips

Credit card processing companies charge merchants a fee for each credit card transaction that they run. Part of that transaction fee can be attributed to the tip added to the credit card receipt. Some states allow merchants to reduce the amount of the tip by the percentage fee charged by their processor while others do not. Lavu now provides restaurant owners the ability to withhold, or ‘refund’, a set percentage of server tips to cover the transaction fee incurred as a result of adding the tip to the transaction.

You may choose to prorate the amount of credit card tips that you pay to your servers to account for transaction fees incurred by those tips.

Please review Federal and State laws and regulations prior to making use of this option to ensure your business is operating legally.

The Tip Refund Rule will calculate the percentage of the server’s credit card tips that you will withhold to cover transaction fees. This information will print on the individual server summary.

Enable Tip Refunds

You can enable this feature during the creation of the employee class or after you have already created the class.

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  1. Login to your Lavu Control Panel
  2. Navigate to Settings > Users / Customers > Employee Classes
  3. Click the ADD NEW button OR open the Employee Class that will have tips withheld
  4. Build the employee class if adding a new class OR proceed to step 5
  5. Enter the appropriate refund percentage in the Tip Refund Rules % box
  6. Click the Card Tips button to the right of the Calculate base on
  7. Click SAVE

NOTE: 

You need to enable a setting in Advanced Location Settings called Prompt servers to enter tip out amounts before printing Server Summary in addition to completing the steps below. Directions on how to do so are written at the bottom of this article. 

Tip Settings

There are two settings available for you to use along with your tip out rules. These settings are located at the bottom of the Employee Classes page.

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Prompt servers to enter tip out amounts before printing Server Summary

An optional setting that generates a prompt in the Lavu POS app to allow servers to review their tip out contributions before printing a Server Summary.

Time interval to include other employee in server tipout

This setting controls how long a member of the support staff must work with a server before they become eligible for tip outs. The example in the image below is set such that a hostess, for example, would need to work at least 30 minutes with a server on the same shift before becoming eligible for tip out.  You can choose to disable this option if you do not have a time requirement or if you do not use the Lavu Clock In/Out feature.

Assign an Employee Class to a User

1. Navigate to Edit Users and click the name of the User you wish to assign an Employee Class or Classes

2. Use the Classes drop-down menus to select a single or multiple Employee Classes for the User

3. Enter a Pay Rate for each of the Employee Classes assigned to the User and remove the default Pay Rate, located at the bottom of the section.

NOTE: If the default Pay Rate is not removed, it will override the first assigned Employee Class Pay Rate.

4. Click Submit when you are done then Reload Settings on all your devices running the Lavu POS App.

NOTE: Users with more than one Employee Class assigned to them will be prompted to select the Employee Class that matches their duties when clocking in through the Lavu POS App.

Enable Prompt Servers to Enter Tip Out 

This is the final step to ensure that your tip outs and refunds are calculated and printed.

  1. Navigate to Settings > Advanced Location Settings
  2. Scroll down to the Reports section
  3. Check the box next to Prompt servers to enter tip out amounts before printing Server Summary
  4. Click SAVE

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