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Log In / Register | May 22, 2018

Two Weeks Left to Comment on Proposed Tip-Pooling Rule Change

Tip

The public comment period is quickly dwindling down on the proposed Fair Labor Standards Act (FLSA) rule change that would allow employers to pool tips given to their wait staff, with one qualification being that the wait staff are paid at least minimum wage. Comments must be received on or before January 4, 2018. The proposal is posted on the Federal Register website.

The Department of Labor proposal was published Dec. 4 and while some — like the National Restaurant Association applaud the rule — others see it as something of a reverse-Robin Hood scheme that could take tips from the lowest paid employees and put them in restaurant owners' pockets.

The authors of an editorial in Newsweek last week said that the rule change allows restaurant owners to collect all tips "and do whatever they want with them — regardless of what diners intended. … Restaurant owners could even keep all the tips for themselves, without telling diners." — Fast Casual

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