Employers should be aware of how we got to the recent FLSA amendment regarding tips, and have a solid understanding of their own tip-related practices, before trying to determine where to go from here.

Today's federal budget included a rider to amend the FLSA and prohibit an employer from keeping tips received by its employees, regardless of whether or not the employer takes a tip credit.

USDOL's Payroll Audit Independent Determination (PAID) pilot program is meant to provide employers with the framework to proactively resolve potential FLSA claims. Nonetheless, on the whole, it seems that the benefits and risks are not particularly distinguishable from an investigation.