Posts tagged tip sharing
Changes to Tip Pooling Rules - Congress Amends the FLSA and DOL Issues Field Guidance on Tip Pooling

In a prior post I discussed the Department of Labor's (DOL) proposed changes to the tip sharing rules of the Fair Labor Standards Act (FLSA), which would allow employers to require mandatory tip pooling if the employer did not take a tip credit for minimum wage compliance purposes. The proposed rule change quickly received negative criticism from restaurant workers and labor advocates due to the fear that the proposed rule would result in employers paying tipped employees minimum wage in order to retain employee tips.

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What Employers Need to Know About the Proposed Changes to the FLSA Tip Sharing Rules

On December 5, 2017, the Department of Labor (DOL) published a Proposed Rule rescinding its 2011 regulations concerning mandatory tip pooling.

Under the Fair Labor Standards Act (FLSA), employers may, in certain situations, take a "tip credit" for some of the tips a tipped employee receives to satisfy the employer's minimum wage obligations. 

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