What’s Next for Restaurant Tip-Pooling Laws?


We’re about to reach a tipping point on tipping: In December, the Trump administration’s Department of Labor announced it would roll back regulations that prohibited tip-pooling, or the distribution of tips to anyone other than the front-of-house staff who earned them. (These regulations were enacted under the Obama administration in 2011).

Under proposed — and currently pending — new regulations, employers that pay all of their employees the full minimum wage (not the tipped minimum) would be considered “owners” of any tips made by their staff. They could then: Share or redistribute tips between servers and back-of-house employees like cooks and dishwashers; keep the tips for themselves; distribute among management; or keep for their business.

Read the full article here

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