Retiring Tip Payouts: Timelines and Alternative Options

After much consideration, we have made the decision to retire the Tip Payouts feature on June 30, 2026.

Please note that your Tip Pools and all other settings within Tip Management are completely unaffected by this change. We remain committed to helping you simplify tip calculations across your team. For those looking for a path forward, please review this article for information on alternate tip distribution methods and key retirement timelines.

⚠️ Important: This guide is specifically for customers located in states where On-Demand Tips via Clair is currently unavailable (CT, MA, MN, NM, NV, and SD). 

If you are located outside of these states, please refer to our guide Transitioning from Tip Payouts to On-Demand Tips

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.

  1. Head to Tip Management > Tip Payouts > Send tips to employees 
  2. 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.
  3. Click Review and Pay to view the payout summary.
  4. Perform a final review of the distribution totals.
  5. Click Pay to initiate the distribution from your remaining float.
  6. Confirm that employees have a valid debit card connected to their profile to ensure successful payment.
Important: Ensure employees have a valid debit card connected to their profile. If a payment fails, the employee will be notified to update their information. Once updated, 7shifts will automatically retry the payment. More information here on Tip Payouts for Employees.

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.

  1. Head to Reports > Tip Payouts. 
  2. Input the desired date range for the Tip Payout report. 
  3. Select 'Export to CSV'.

Learn more about the Tip Payouts report here: Tip Payouts Report

Automated Tip Distribution Alternatives 


For customers looking for an automated tip distribution path but who are located in a state where On-Demand Tips via Clair is currently unavailable (CT, MA, MN, NM, NV, and SD), we recommend exploring TipHaus.

TipHaus is a third-party tip management platform that integrates with 7shifts to assist with distributions by automatically pulling in your employee, shift, and job code data, so you can continue using 7shifts with no further disruption to your team.

Learn more about the TipHaus Integration here.

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