Labor Department Issues Final Rule Opening Up Tipping Pools To Non-Tipped Workers - News Summed Up

Labor Department Issues Final Rule Opening Up Tipping Pools To Non-Tipped Workers


ToplineThe Department of Labor on Tuesday issued final regulations changing how tipped workers are paid, which includes a controversial provision allowing back-of-house staffers, such as cooks and dishwashers, to be added to tip pools. That’s how much money the Labor Department estimates will be shared between employees when back-of-house staffers are included in tip pools. The FAQ also notes that in order to be eligible for tip sharing, employers can’t take a tip credit. This means employers have to pay front-of-house workers minimum wage if they aren’t already doing so, which could boost wages for front-of-house workers. What To Watch ForThe incoming Biden administration could delay the regulations from taking effect or create new rules for tipped workers.


Source: Forbes December 22, 2020 22:41 UTC



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