The Department of Labor announced last Tuesday that servers and other workers that make tips might be required to share their tips with non tipped staff members.
The new provision amends the Fair Labor Standards Act that would allow staffers, like cooks and dishwashers who are normally excluded from tip pools, to be included.
Employers will be able to choose between receiving a traditional or non traditional tip pool that will depend on if they are paid minimum wage.
Servers or employees that receive minimum wage and tips would be required to share their tips with employees who would normally not receive tips.
FLSA says, “Any employee that chooses to take a tip credit must pay the tipped employee a direct cash wage of at least $2.13 per hour. The employer may then take a credit against its wage obligation for the difference up to $5.12 per hour in tips received by the employee if the cash wage plus the employee’s tips equal at least the minimum wage.”
The FLSA will require covered employers to pay their non life exempt employees at least $7.25 an hour.
The rule is set to go into effect in 60 days and will prohibit employers from allowing managers or supervisors to keep any portion of the employees tips.
