National Tip Pooling Win

National Tip Pooling Win

Tip Pooling – Press Release March 23, 2018

It is now legal to tip pool.

Early this morning, Congress passed critical funding legislation that included repealing the tip pool rule that barred certain employers from setting up tip-pooling arrangements where tipped employees can share tips with their non-tipped colleagues.

The bill also includes a provision that ensures workers will receive all of their tips. Supervisors, managers and owners are not allowed to benefit from a tip pool.

The Department of Labor issued a field bulletin on April 6, 2018, further clarifying the change.

The National Restaurant Association said it believes the enforcement and penalty language for unintentional violations goes too far and it is working with Labor Secretary Alexander Acosta and senior lawmakers to address this issue.

Washington Hospitality Association President and CEO, Anthony Anton, previously issued the following statement on the tip pooling policy:

“Working in the hospitality industry – in a hotel or restaurant – is being part of a team. All employees are working toward the common goal of providing the best possible customer experience. Allowing all members of the team outside of management to share in the success of the restaurant through tip pooling or tip sharing is very powerful.

“Contrary to some media reporting, employers in the state of Washington cannot take the tips their employees earn. Under Initiative 1433, all tips and gratuities belong to the employee. Owners and managers cannot benefit from a tip pool in the state of Washington. The Association strongly supports these protections and believes in the principle that tips belongs to the workers.

“A customer’s overall experience directly affects their total tip, and it makes sense that more than the front of the house employees would benefit. Tip sharing will help close the wage gap among restaurant employees. This rule change rewards teams who work together and is truly a win for all employees.”

Click here to learn more about tip pooling laws, the tip pool rule and how they impact your business.

Read more
Categories: Archive