Employer-Mandated Tip Pooling – Don’t Do It
In March 2016, the federal appellate court for our region upheld a previous DOL ruling that barred ‘tip pooling’ for employees who typically do not earn tips (i.e., back of the house staff) under the Fair Labor Standards Act.
Employers in the service industry cannot require staff who do not fall within FLSA’s definition of “customarily and regularly tipped employees” (such as line cooks, dishwashers, etc.) to be included in any tip pooling. Staff may include these employees in tip pooling voluntarily, however.
Please visit DOL’s website for more information.