The Tip-Pooling Shakeup, and What it Means for Your Restaurant

“Buried within some 2,300 pages of the federal omnibus spending bill passed in March, the Tip Income Protection Act of 2018 allows for employees who do not customarily receive tips—busboys, chefs, line cooks, and the like—to participate in tip pools while also declaring that supervisors, managers, and owners cannot participate in tip pools.”The new legislation repealed a 2011 U.S. Department of Labor regulation that prohibited workers who did not regularly receive gratuities from participating in tip pooling regardless of whether their employers utilized the tip credit.”

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