DOL Proposes New Tip Pooling Rule

Although the Department of Labor has established a minimum wage by government for $7.25 and hour many in the service industry work for tips. The tips rule as it is today under the Obama administration guidelines stipulates that a front house guest facing worker can be paid $2.13 an hour plus tips as long as the tips generated produce at least the $7.25 minimum wage. Many back room workers like cooks, dishwashers and managers do not have an eligibility to tips and at times have voiced their frustrations as many guest facing employees earn much more. This article helps to explain the changes to this rule that the Department of Labor wishes to impose to make this payment system work for all employees.

Key Takeaways:

  • If this proposal moves forward, it would rollback the 2011 regulation from the Obama administration that made tips the property of guest-facing workers.
  • Many servers end up making more per hour than the minimum wage when tips are factored.
  • Advocates of this rule see this proposed change as a way to ensure that these employees who also contribute to customer experience are compensated fairly. Additionally, increasing wages for these work

“If this proposal moves forward, it would rollback the 2011 regulation from the Obama administration that made tips the property of guest-facing workers.”

Read more: https://www.qsrmagazine.com/human-resources/dol-proposes-new-tip-pooling-rule

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