Servers Could Be Required to Share Tips Under New DoL Regulation

The closing rule addresses amendments to the US Fair Labor Standards Act (FLSA) by the Consolidated Appropriations Act of 2018 (CAA), which beforehand protected wait staffers’ ideas from being taken by these in administration or supervisor positions.

The US Department of Labor introduced a closing rule on Tuesday geared towards “protecting the tips of employees,” in accordance to a information launch.

“Newly allowed tip sharing may incentivize the inclusion of these previously excluded workers and reduce wage disparities among all workers who contribute to customers’ experience.”

It is customary for US restaurant clients to depart their waiter a tip totaling 20% of the pretax complete of a invoice.

“The CAA prohibits employers from keeping tips received by their employees, regardless of whether the employer takes a credit for tips earned by workers toward its minimum wage obligation to those employees under the FLSA,” the Tuesday launch famous. “The rule also prohibits employers from allowing managers or supervisors to keep any portion of employees’ tips.” 

Heidi Shierholz, the director of coverage on the Economic Policy Institute and an Obama-era Labor Department economist, informed the Wall Street Journal that the brand new legislation “will allow employers to shift work from non-tipped to tipped workers.” 

In flip, the restaurant proprietor may find yourself paying much less wages out-of-pocket. 

Shierholz argued that there have been different avenues for the Trump administration to take if it really wished to handle wage inequality. “If the administration wanted to raise pay for back-of-the-house workers, they could have supported a minimum-wage increase,” she mentioned, referring to the federal minimal wage.


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