Managers Would Be Banned From Tip Pools Under DOL Proposal (1)

The Labor Department Oct. 7 released a proposed rule that would prohibit supervisors and managers from participating in tip-pooling arrangements at restaurants and other businesses.

If finalized, it also would allow employers to create tip pools in some instances to include dishwashers and other back-of-the-house workers who usually don’t get tips.

The National Restaurant Association called the proposed rule a “victory,” saying it provides “much-needed clarity” for restaurants and workers.

“This rule establishes once and for all an appropriate balance, and ends arbitrary and capricious regulations discretely slipped into practice by the prior administration without appropriate public comment and review,” ...