DOL Announced Proposal Expanding Tip Sharing

On December 4, 2017, the U.S. Department of Labor (DOL) announced a notice of proposed rulemaking (NPRM) regarding the tip regulations under the Fair Labor Standards Act (FLSA). Under the proposed rule, workplaces could permit tip sharing among more employees. The proposed rule would apply to employers that pay a full minimum wage, do not take a tip credit, and allow tip sharing through a tip pool with employees who do not traditionally receive direct tips, such as restaurant cooks and dish washers. The proposal would not affect current rules applicable to employers that claim a tip credit under the FLSA.

The NPRM was published in the Federal Register on December 5, 2017 and is available for public comment for 30 days.

Read the press release here.