Sharing Tips between Certain Workers

The U.S. Department of Labor announced a proposed rule that would allow tips to be shared between traditionally tipped and non-tipped workers. The rule is intended to decrease the wage disparities between these groups of workers. The proposal would apply where employers pay a full minimum wage and do not take a tip credit and allows sharing tips through a tip pool with employees who do not traditionally receive direct tips – such as restaurant cooks and dish washers. These “back of the house” employees contribute to the overall customer experience, but may receive less compensation than their traditionally tipped co-workers.