Tip Pool Rule Heads to White House as Regulatory Probe Looms

The Labor Department is moving ahead with a new rule on tip sharing arrangements as an internal watchdog reviews a previous attempt at the rule that ended in controversy last year.

The Labor Department July 26 sent a proposed tip pooling rule to the White House Office of Management and Budget. The regulation would make it easier for restaurants, bars, and other businesses to force tipped employees who make the full minimum wage to share gratuities with back-of-the-house and other workers who aren’t commonly tipped.

A similar proposal hit the skids last year after Bloomberg Law reported it was scrubbed ...