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Tip-Pooling Practices May be a Thing of the Past

2.1.17

Restaurants and other hospitality businesses in the Western U.S. recently received tough news as a Federal appeals court refused to strike down a controversial tip-pooling regulation from the U.S. Department of Labor (DOL). The DOL rule prohibits businesses from requiring employees to share their tips with back-of-the-house staff -- even if the tipped employees are paid minimum wage. Although a group of hospitality employers had hoped that the 9th Circuit Court of Appeals would reject the rule as contrary to well-established law, it was upheld. The decision applies to all businesses operating within the 9th Circuit, including the states of California, Nevada, Washington, Arizona, Oregon, Idaho, Montana, Hawaii, and Alaska.

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