Transitioning from Tip Payouts to On-Demand Tips
7shifts is retiring the Tip Payouts feature on June 30, 2026, to provide a simpler, more flexible experience. By moving to payroll-based tip distribution and on-demand tip payouts offered through Clair On-Demand Pay, your team can access their earnings fast without the administrative burden of managing a float.
Things to Know
- The 7shifts Tip Payouts feature will be officially retired on June 30, 2026.
- After June 19, 2026, the ability to add new funds or top up your float will be disabled.
- Accounts currently using Tip Payouts are responsible for processing their final distribution batches to clear out their float balances by June 30, 2026.
- To ensure a smooth account closure, please verify that your linked bank account on file is active and up to date for any final balance reconciliations.
- If any balance remains after the June 30 retirement date, it will be automatically returned to your linked account. Please allow 7–10 business days for the funds to process.
- Tip Pooling and Tip Management settings are not affected by this change. 7shifts will continue to calculate tips as it does today.
Distribute remaining float balances
To clear your remaining float balance before June 30, 2026, process your final tip payouts through the 7shifts platform.
- Head to Tip Management > Tip Payouts > Send tips to employees
- Choose to add tips to a payout batch by selecting Automatically Sync Tips to pull data from 7shifts Tip Calculation, or Manually add tips to enter amounts for specific employees.
- Click Review and Pay to view the payout summary.
- Perform a final review of the distribution totals.
- Click Pay to initiate the distribution from your remaining float.
- Confirm that employees have a valid debit card connected to their profile to ensure successful payment.
Learn more on sending Tip Payouts here: Building your payout batch and Sending a Tip Payout.
Download historical Tip Payout reporting
To ensure you have a copy of your data, export your full Tip Payout history for your records before the feature retirement date.
- Head to Reports > Tip Payouts.
- Input the desired date range for the Tip Payout report.
- Select 'Export to CSV'.
Learn more about the Tip Payouts report here: Tip Payouts Report
Transition to On-Demand Tips
7shifts recommends moving tip processing to your payroll provider to enable On-Demand Tips through Clair On-Demand Pay directly within the 7shifts app. This new solution offers several benefits:
- On-Demand Tips does not require maintaining a cash float balance with 7shifts.
- Employees can advance earned tips to bank accounts before payday.
- Clair settles with the employee directly on payday, requiring zero administration on your end.
On-Demand Pay is a financial benefit that allows eligible 7shifts users to take advances before payday. The service is powered by Clair, with all advances issued by Clair’s partner bank, Pathward®, N.A. On-Demand Tips are available as part of Clair On-Demand Pay.
All Advances are originated by Pathward®, N.A. All Advances are subject to eligibility criteria and application review. Terms and conditions apply.
Prerequisites
To use On-Demand Tips, your account must:
- Have an active paid 7shifts plan.
- Be a US-based customer (excluding CT, MA, MN, NM, NV, and SD).
- Use 7punches or an integrated POS for labor data.
- Have both the Clair and Tip Management add-ons enabled.
- Process tips through 7shifts Payroll or your payroll provider.
Learn more about Clair On-Demand Tips: Clair On-Demand Tips for Admins