Category Archives: Tip Pooling

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New Tip Pooling Guidelines For Employers

The recent passage of the Consolidated Appropriations Act of 2018 (“H.R. 1625”), an 878-page omnibus spending bill, significantly changes the rules for tip pooling under the Fair Labor Standards Act (the “FLSA”). While the conditions for taking a tip credit toward federal minimum wage obligations remain essentially unchanged, H.R. 1625 appears to permit the inclusion … Continue Reading

Ninth Circuit Limits Tip Pooling to Customarily Tipped Employees

In a decision with important implications for employers throughout the service industry, the federal Ninth Circuit Court of Appeals ruled on February 23 that employers cannot implement policies requiring tipped employees to share their tips with untipped employees. The 2-1 decision in Oregon Restaurant & Lodging Assoc. v. Perez, — F.3d –, No. 13-25765 (9th … Continue Reading
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