Dec 5, 2017

Trump admin proposes reversing Obama-era rules on tip-pooling

Patrons sitting at the counter of a Rhode Island restaurant. Photo: Stephan Savoia / AP

The Department of Labor said Monday that it is proposing a rule change that would reverse Obama-era restrictions on tip-pooling in restaurants. The practice allows employers to combine servers' tips and share them with "back of the house" employees, such as cooks and dish washers, who do not get customer tips.

Yes, but: The Obama administration enacted the labor regulation to prevent employers from seizing and pocketing servers' tips. Industry groups say tip-pooling is necessary to equalize compensations of servers and untipped workers. But workers' rights groups may fight the Trump administration on this move, noting that some employers already pay tipped employees less than others to account for the gap, NBC reports.

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