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.
  • 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 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 Workforce > Settings and expand Employee Classes.

    expand_employee_classes.png

  3. Click  + ADD new class button.

    Add_new_class_button.png

  4. Type in the Employee class name (e.g. Host/Hostess). 
  5. Click either FOH (Front of House) or BOH (Back of House).
  6. Click Save.

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Repeat this process until you have created employee classes for 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 (Total 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 tip out percentage among several employees working in the same class evenly or by hours worked using the Tip out Breakdown option. This means, for example, that designating a tip out percentage of 10% would subtract 10% of the server's tips and split that 10% between the employees who are clocked in as tipped-out employees. 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 bus boy (Rule #1). They will also tip out 10% of their cocktail sales to the bartender (Rule #2). Both tip out 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 tip out rules along with the class.

 Create an Employee Class with Tip Out Rules

  1. Login to your Lavu Control Panel.
  2. Navigate to Workforce > Settings and expand Employee Classes.

    expand_employee_classes.png

  3. Click  + ADD new class button.

    Add_new_class_button.png

  4. Type in the Employee class name (e.g. ‘Server’).

    add_new_class_screen_copy.png

  5. Click either FOH (Front of House) or BOH (Back of House). (You should select FOH as this is a tipped employee which generally means they work the front of house.)
  6. Click + Add tip out rule.
  7. Enter the percentage amount for the Rule # 1 in the Tip percentage box.

    step789.png

  8. Click on the first Employee class drop-down to the right of the % box to select the first employee class to receive this percentage of the tip out.
  9. OPTIONAL: Click on the second Employee class dropdown if more than one employee class will receive the same percentage of tip out.
  10.  Click on:
    1. Tip Type Tip and then select (click on) the appropriate tips to track next to that box (Total Tips, Cash Tips Only, or Card Tips Only)

      tip_type_tip.png
      OR
    2. Click on SALES and select either All Sales or Super Groups  and then choose the appropriate Super Group(s).

      tip_type_sales.png
      suoer_groups.png
      Note: by default all the super groups are checked. Uncheck (click) the super groups you don't want to include in the tip out calculation.

  11. Click one of the Tip out rules calculated options; select either Evenly or Hours Worked, depending on your business rules.

    top_out_calculated.png

  12. Click SAVE.

Tip Withholding

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 and other costs of operation.

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 and other costs to operate the business.

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

The Tip withholding setting will calculate the percentage of tips that you will withhold to cover the cost of operations. 

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 Workforce > Settings and expand Employee classes.
  3. Click the + Add new class button OR click the pencil icon for the Employee class that will have tips withheld.
  4. Build the employee class if adding a new class OR proceed to step 5.
  5. Click Tip Withholding.
  6. Enter the appropriate refund percentage in the Tip refund percentage box.
  7. Click Save at the top right of the page.

NOTE: 

You need to enable a Workforce setting in Advanced 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. 

Advanced Settings

There are two settings available for you to use along with your tip out rules. These settings are located In the Advanced settings section of the Workforce settings page.

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Expand the Advanced settings to reveal these settings.

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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 tip out

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. 


The drop-down for Time interval to include other employee in server tipout.
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Assign an Employee Class to a User

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

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2. Click on the name of the user you want to assign to a class.

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3. Expand the Pay rate & roles section.

4. You can Assign only a pay rate for this user. But this procedure is how to assign an employee class to a user.

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3. Click on the box next to the class this user will belong to. You may select one or more classes for a user.

4. Enter a Pay Rate for each of the Employee Classes assigned to the User.

5. Click Update 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. On the Workforce settings page, expand the Advanced Settings.
  2. Scroll down to the Tip out section.
  3. Click On for Prompt servers to enter tip out amounts before printing Server Summary.
  4. Click SAVE.

    Tip_out_advanced_settings.png

 

 

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