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Proposed New Rule on Tip Credits and Pooling Announced by U.S. DOL

By Epstein Becker Green on October 9, 2019

Our colleague Jeffrey H. Ruzal at Epstein Becker Green has recently published a post on the Hospitality Labor and Employment Law blog that will be of interest to our readers: “U.S. DOL Announces Proposed New Rule on Tip Credits and Pooling.”

Following is an excerpt:

The proposed rulemaking will codify the DOL’s recent guidance that an employer may take a tip credit for any amount of time an employee in a tip-earning occupation performs related non-tipped duties that are performed contemporaneously with, or within a reasonable time immediately before or after, the tipped duties.  The proposed regulations specifically identify a server’s tasks of cleaning and setting tables, toasting bread, making coffee, and occasionally washing dishes or glasses as related non-tipped duties that qualify as time for which a tip credit may be taken.  In addition to these examples, the proposed rulemaking provides that a non-tipped duty is related to a tip-related occupation if the duty is identified as a task of a tip-producing occupation in the Occupational Information Network (O*Net).  This is distinguishable, however, from work unrelated to the tipped occupation, which would then be considered a “dual job” for which a tip credit cannot be taken.

The proposed new rulemaking also reiterates the provision in the Consolidated Appropriations Act of 2018 that prohibits employers, managers, and supervisors from keeping any tips received by employees. …

Read the full article here.

  • Posted in:
    Employment & Labor
  • Blog:
    Wage and Hour Defense Blog
  • Organization:
    Epstein Becker & Green, P.C.

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