The U.S. Department of Labor today announced a final rule protecting the tips of employees. This rule prohibits employers from keeping tips received by their employees, regardless of whether the employer takes a credit for tips earned by workers toward its minimum wage obligation to those employees.
The rule also prohibits employers from allowing managers or supervisors to keep any portion of employees’ tips.
According to the regulation:
This final rule provides clarity and flexibility for employers and could increase pay for back-of-the house workers, like cooks and dishwashers, who have been excluded from participating in tip pools in the past,” said Wage and Hour Administrator Cheryl Stanton. “Newly allowed tip sharing may incentivize the inclusion of these previously excluded workers and reduce wage disparities among all workers who contribute to customers’ experience.