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Wage and Hour Update: DOL Proposes Changes to FLSA Tip-Pooling Rule

On July 20, 2017, the U.S. Department of Labor (“DOL”) announced that in August it plans to propose rescinding current restrictions on tip-pooling by employers who pay tipped employees the full minimum wage directly.  Under the current rule, tips are considered employee property and cannot be distributed to other workers or retained by the employer, even if the employer pays tipped employees their full minimum wage without any reduction for tip credit.  Although this latest announcement does not change or reverse the current rule, it signals that a change is on the way. Continue Reading