Trump’s New Tip Pooling Rule Means Harsh Fines for Rule-Breakers

From: Foodable

Tipping can be a minefield.  Just ask Mario Batali, Daniel Boulud or Jessica Biel.  They’ve all been sued by their employees for allegedly pocketing tips in what is rapidly becoming one of today’s most heavily litigated areas of law.  The law is confusing and, up until a few weeks ago, was silent on a key issue that spurred an interpretation dispute between the Department of Labor (DOL) and federal courts that spanned almost a decade.

Brasserie 19 Sued Over Alleged Improper Tip Pooling

From: Eater | Houston

A former server at the restaurant seeks back pay and lost wages

Surly Brewing will pay $2.5M to end lawsuit over tip-pooling

From: Minneapolis/St. Paul Business Journal


Surly Brewing has settled a class-action lawsuit filed by former employees who claimed the Minneapolis brewery improperly required they share their tips.

The Star Tribune reports that Surly will pay $2.5 million to settle the lawsuit. Proceeds will be split among about 140 bartenders and servers who participated in the lawsuit. Lawyers for the case will receive about one-third of the settlement.

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Houlihan’s Operator Agrees to $5M Settlement of Tip-Pooling Case With US Labor Dept.

From: New Jersey Law Journal

By Charles Toutant

An operator of Houlihan’s restaurants in New Jersey and New York has agreed to pay $5 million in a consent judgment after the U.S. Department of Labor accused it of illegally pocketing a portion of servers’ and bartenders’ tips.

OMB Review of IRS Regulations

It is likely that OMB will begin the review of Treasury tax regulations, an exemption from OMB review which was granted over three decades ago that should never occurred in the first place.

Having worked for more than a half century to vest OMB with the authority to review regulations I doubt whether there are any new arguments against OMB’s likely new role will emerge during the current debate.

The traditional arguments include the lack of OMB expertise in the particular subject matter at hand. I heard this argument many times over when OMB (OIRA and its predecessor organizations) began to review EPA regulations.