DOL proposes new tip-pooling rules to benefit back-of-the-house staff — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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DOL proposes new tip-pooling rules to benefit back-of-the-house staff

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in Employment Law,Human Resources

The U.S. Department of Labor has announced a proposed rule affecting Fair Labor Standards Act tip regulations that would give employers more options for sharing tips among more employees.

The proposed rule would allow employers to require tipped employees to pool their tips to be shared with employees who do not traditionally receive direct tips, such as restaurant cooks and dishwashers. These “back of the house” employees contribute to the overall customer experience, but may receive less compensation than their traditionally tipped co-workers.

The proposal would help decrease wage disparities between tipped and nontipped workers—an option that is currently restricted by a rule promulgated in 2011 that has been challenged in a number of courts.

The DOL’s proposal only applies where employers pay a full minimum wage and do not take a tip credit. The proposal would not affect current rules applicable to employers that claim a tip credit under the FLSA.

Learn more about the proposed rule (and how to submit comments on it through Jan. 3, 2018) at

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