DOL Issues New Rule for Employee Tip Pools

On December 22, 2020, the U.S. Department of Labor (DOL) gave an early holiday gift to employers in the restaurant and hospitality industry. Namely, the agency announced its long-awaited final rule, which allows employers who do not take a tip credit to require employees to pool and distribute employee tips among “back-of-the-house workers,” who do not traditionally receive direct tips. The rule codifies earlier subregulatory guidance from the DOL on tip pooling, and also addresses amendments...
By: Foley & Lardner LLP

Array