7shifts, the leading scheduling and payroll platform for the restaurant industry, has announced the launch of On-Demand Pay for Tips. Powered by embedded fintech leader Clair, the new solution allows restaurant employees to access a portion of their earned tips shortly after a shift ends, bypassing the traditional two-week pay cycle. The integration is designed to help operators combat a labor shortage of over 220,000 jobs and a staggering 130% annual turnover rate by offering financial flexibility as a key retention tool.
Product: On-Demand Pay for Tips, fully embedded within the 7shifts mobile app.
Partnership: Powered by Clair and supported by Pathward, N.A.
Problem Solved: Addresses the restaurant "dual crisis" of labor shortages and high turnover.
Efficiency: Automatically calculates tip earnings after shifts, removing manual administrative work for managers.
Impact: Research suggests on-demand pay can improve hospitality employee retention by up to 36%.
Cost: Optional instant access is provided at no cost to the employer.
In a sector where workers often rely on tips for the majority of their income, waiting for a traditional paycheck can create significant financial strain. The 7shifts integration allows tip data to be processed and sent to Clair typically within 24 hours of a shift's end. Once finalized by a manager, employees can see their available balance—a combination of earned wages and tips—and choose to advance funds directly to their bank account.
"By offering instant access to both wages and tips inside the 7shifts app, we're helping operators improve retention and engagement while removing the administrative friction," said Jordan Boesch, CEO of 7shifts.
The solution is built on the Model Context Protocol (MCP) principles of interoperability, appearing as a natural extension of the 7shifts workflow. For employees, the experience is intuitive:
No Credit Checks: Advances are based on earned income, not credit scores.
Automatic Repayment: Advances are typically repaid automatically from the employee's next paycheck.
Transparent Fees: While standard transfers are free, an optional instant transfer fee of $4.99 applies for funds delivered in seconds.
With three-quarters of restaurant operators citing recruitment as their top hurdle, instant pay has moved from a premium perk to an operational necessity. By unifying wages and tips into a single digital experience, 7shifts and Clair are providing 55,000+ restaurants with a modern financial tool that simplifies the back office while supporting the financial health of the front-of-house and back-of-house teams.
About 7shifts
Born in the back office of a sandwich shop in 2014, 7shifts is a scheduling and payroll platform designed to help restaurant teams thrive. It serves more than 55,000 restaurants, helping them save time, reduce errors, and control costs through industry-specific solutions.
About Clair
Clair is a mission-driven fintech company offering embedded earned wage access products to break the traditional pay cycle. Based in New York, Clair is available at over 148,000 work locations across 29 industries.
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