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Tag: tips

News Flash: Update on Tip Pooling

December 4, 2017

The U.S. Department of Labor today announced a Notice of Proposed Rulemaking (NPRM) regarding the tip regulations under the Fair Labor Standards Act (FLSA). Under the proposed rule, workplaces would have the freedom to allow sharing of tips among more employees – an option that is currently restricted by a rule promulgated in 2011 that has been challenged in a number of courts.

The NPRM will be published in the Federal Register on December 5, 2017, and be available for public comment for 30 days. The Department encourages interested parties to submit comments on the proposed rule. The NPRM, along with the procedures for submitting comments, can be found at the Wage and Hour Division’s Proposed Rule website.

– From the USDOL WHD

Quick Tips: Minimum Wage and Tipped Jobs

July 25, 2017

According to the FSLA, an employer is excused from paying at least the minimum wage for tipped jobs, as long as tips make up the difference.

When an employee is employed by one employer in both a tipped and a non-tipped job, the employer is excused from paying at least minimum wage for the time that the employee spends actually working the tipped job.

Also note that the FLSA does allow the employer add in some tasks that are related to the tipped job even though there is no opportunity for tips while completing these tasks only if these tasks as less than 20% of the employee’s time.