Attention (Again) California Restaurant Employers: Congress Changes the Tip Pool Rules

Author: Sean Gentry Earlier in the year, we reported that the Department of Labor was proposing to rescind prior Federal restrictions on tip-pool arrangements, and that we expect a related decision from the U.S. Supreme Court on those rules. In a somewhat unexpected turn, Congress decided to directly intervene on the tip-sharing agreements under the Fair Labor Standards Act as a part of a recently-passed spending bill. Under the new federal law, employers with regularly tipped employees may include a … Continued

DOL Set to Rescind Restrictions on Tip Pooling

Author: Sean Gentry The U.S. Department of Labor is preparing to eliminate a 2011 restriction on certain hospitality employers from entering into tip-sharing agreements with individuals who are not customarily and regularly tipped. The effect of this is that restaurant employers will likely be able to include kitchen and back-of-the-house employees in the tip pool.  This may alleviate problems some restaurants have had in retaining high quality back-of-the-house employees because it may allow employers to more easily compensate such employees … Continued