We actually had a lawsuit against one of my former employers for doing something similar.

According to the labor laws in my state (and others as well), tips can only be shared amongst those with direct face-to-face contact with the customer, and with no one in a supervisory position.

Part of our tip share was going to pay a service bartender in the kitchen (who never sees a customer) as well as a woman who HAD been a manager, but no longer could be one due to getting a DUI. In the state of Kansas, if you get charged with an alcohol-related crime, you can not serve, nor be in charge of anyone who serves, alcohol. So, they created a made up position for her, and she still did all of her managerial duties, just under a different heading. When we found out that the restaurant wasn't paying her and, in fact, she was getting a chunk of our tips, we raised hell and after several internal investigations throughout the company, about a dozen managers throughout the company were fired and they had to pay out a settlement of seven digits plus.

Not sure about the laws in Canada, but if the basis for that story were anywhere in the U.S., some heads would roll.

Chris