Labor unions’ self-interested scheme to abolish tipping

From: Washington Examiner

by Jennifer Schellenberg

Is the Labor Department scheming to take away restaurant servers’ tips? That’s the message some labor advocates are sending in response to a proposed rule-making by the Trump administration that would permit kitchen staff in certain states to receive a portion of servers’ tips.


Labor Secretary Weighs in on Tip Pooling

From: Society for Human Resources Management

By Lisa Nagele-Piazza, SHRM-SCP, J.D.

Labor Secretary Alexander Acosta says he backs legislation that would prevent employers from taking tips from workers.

I fully support a provision that says establishments should not be permitted to keep any portion of a tip,” he said at a March 6 U.S. House of Representatives subcommittee hearing. He suggested, however, that such a directive should come from Congress in the form of legislation, and not as a rule from his agency.

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The DOL’s Proposed Tip-Pooling Regulations Will Likely Take Effect in 2018

From: Kreis Enderle



The stated purpose of the rule is to help decrease wage disparities between tipped and non-tipped workers – an option that is currently restricted by the 2011 rule. Critics of the rule claim that employers could do whatever they want with the tips, including keeping a portion for restaurant improvements or sharing them with salaried managers.

The DOL’s proposed rule would only apply where employers pay a full minimum wage and do not take a tip credit and allow sharing tips through a tip pool with employees who do not traditionally receive direct tips. The proposed rule w