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

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