Servers may have to share tips with co-workers who have traditionally not received tips in the past, according to a new rule announced by the U.S. Department of Labor.
The department announced the amendment to the Fair Labor Standards Act (FLSA) by the Consolidated Appropriations Act of 2018 (CAA) on Tuesday, a law which protected servers’ tips from being taken by management or supervisors.
The new amendment, however, will allow restaurant to implement a “traditional” or “nontraditional” tip pool, dependent on whether or not servers are paid minimum wage.
For instance, if an employer claims a tip credit from servers and wants to invoke tip-pooling, it must be a “traditional” tip pool, meaning tips can only be shared among people who traditionally receive tips such as servers and bartenders. Workers “in the back” such as cooks and dishwashers cannot take part in the “traditional” tip-pooling.
“An employer that elects to take a tip credit must pay the tipped employee a direct cash wage of at least $2.13 per hour. The employer may then take a credit against its wage obligation for the difference—up to $5.12 per hour—in tips received by the employee if the cash wage plus the employee’s tips equal at least the minimum wage,” according to the FLSA.
The FLSA “requires covered employers to pay their nonexempt employees a minimum wage of at least $7.25 per hour.”
More rules that screw the hospitality industry. Our backbone for survival on the island. Geez
I want all politicians to be required to divide up all their pay to all we the people
Enough of all this garbage
It’s time for we the people to start going after every one of these politicians
Why don’t you all get the fk outta working people’s business?
I’m with 5:23, share your salary with your constituents. We won’t mind a bit!
Moving towards socialism with this one. Tips are intended to reward the front line worker busting their butts!
If you “share” your tips with another person, it is not “earned” income to that second person. In addition, it is a “charitable” contribution (thus a deduction) to this second person.
So you can be a hard worker and share all of YOUR tips with the slackers. Does anyone else see this as, everyone gets a trophy situation.
When I leave a tip it’s because the server has done his/her job – either well or not, and that’s who I intend the money to go to.
“The employer may then take a credit against its wage obligation for the difference—up to $5.12 per hour—in tips”
bunch of dumb dumbs commenting
you are paying their wage and the employer gets a tax credit
tipping is a scam and always will be – you are paying the wage for the restaurants employees
same with self check out – you are doing the employees job for free
such sheeple you are