DOL Proposes New Tip Pooling Rule

The US Department of Labor is making new rules when it comes to restaurant pay and how tips are passed out to employees. Under President Obama only employees working with guests got tips but now under Trump he is changing it to make it possible for all employees to be able to get a share of the tips. While some say it should be up to each restaurant how they want to dole them out the Department of Labor is once again changing the rules.

Key Takeaways:

  • Though the national minimum hourly wage is $7.25, a tipped employee can be paid only $2.13 as long as their tips make up the difference.
  • Many restaurants want more employees eligible to be counted as tipped workers to reduce labor costs to the owners.
  • If the Department of Labor’s rule goes into effect, the number of employees who count as tipped with explode; saving restaurants significant amounts.

“On Monday, the U.S. Department of Labor proposed a new tip pooling rule that would expand the number of employees eligible for tip pooling to include more back-of-house workers and potentially managers.”

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

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