Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.


Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

Labor Dept. proposal triggers a battle over employee gratuities

Joe Mont | February 7, 2018

There are two things we have learned during the first year of the Department of Labor under the Trump Administration: it isn’t afraid to court controversy; and anything promulgated under the Obama administration has a big bull’s-eye on it.

A recent effort that could force waiters and waitresses to share gratuities with non-server co-workers falls under both categories.

In December, the Department of Labor announced a Notice of Proposed Rulemaking regarding the tip regulations under the Fair Labor Standards Act . Under the proposed rule, workplaces “would have the freedom to allow sharing of tips among more employees” and “help decrease wage disparities between tipped and non-tipped workers,” an option that is currently restricted by a rule promulgated in 2011 and subsequently challenged in a number of courts.

The Department’s proposal only applies where employers pay a full minimum wage and do not take a tip credit and “allows sharing tips through a tip pool...

Buy this article for $49, or subscribe to Compliance Week for a month at $149 and get unlimited article access for 30 days.