Labor/Employment,
Government,
Administrative/Regulatory
Apr. 3, 2018
Spending bill creates compromise on tip pooling rules
President Trump recently signed into law the Consolidated Appropriations Act, which includes a section on tipped employees that mirrors the proposed Tip Income Protection Act.
Pooja S. Nair
Partner
Ervin Cohen & Jessup LLP
Email: pnair@ecjlaw.com
Pooja is a litigation attorney who has represented clients in the health care, life sciences, and banking industries in state and federal court, and has handled delicate compliance issues and internal investigations. She is a member of the firm's food and beverage department.
The Department of Labor announced last December that it planned to reverse course on the issue of tip pooling and give employers greater control over tips paid to employees, including leaving open the possibility of employers pocketing tips left for employees. More than 3 million people in the U.S. are tipped employees, so the impact of tip regulations is significant.
The DOL's proposed rule was a rollback of rules established by the...
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