U.S. Department of Labor issues notice of proposed rulemaking for tipped employees
WASHINGTON (WENY) -- The U.S. Department of Labor is proposing changes for the way tipped employees can earn money.
Current acts prohibit employers from keeping employees' tips. But a proposed rule would allow employers who do not take a tip credit to establish a tip pool.
The pool would be shared between workers who receive tips and are paid the full minimum wage, and employees who do not traditionally receive tips, such as dishwashers and cooks.
"The proposed rule shows the Department's commitment to ensure that employees' tips are not stolen," Wage and Hour Administrator Cheryl Stanton. "This proposal offers a clear pathway for both employers and employees to legally operate a tip pool. The Department is also seeking to add further guideline in order to complement congressional action and solidify current guidance with the benefit of public input through notice and comment rulemaking."
The proposed regulation also addresses exactly which non-tipped duties are related to a tip-producing occupation.