FACT: The proposed rule would rescind a controversial 2011 Obama administration regulation that prohibited back-of-the-house employees from receiving tips. This rule was already the subject of extensive legal scrutiny, first challenged by a lawsuit that included an Oregon server (Susan Ponton) who wanted kitchen staff included in her restaurant’s tip pool:
As a result [of the 2011 DOL rule, Ponton] will be prohibited from continuing to enjoy the benefits from this form of a tip pool, including increased camaraderie between front-of-house and back-of-house employees, a higher level of teamwork among the employees and a higher level of service to customers as a result all of which directly results in higher tips for Ponton and the rest of the employees.
The 10th Circuit Court of Appeals ruled in July of last year that the Perez Labor Department lacked the authority to promulgate the 2011 rule. The Trump Labor Department has dropped the appeal of the 10th Circuit decision, and would again permit back-of-house employees to participate in a tip pool.