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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.

Go deeper

Updated 23 mins ago - Economy & Business

The states ending federal pandemic unemployment benefits early

Protesters demand senators support the continuation of unemployment benefits on July 16, 2020 in Miami Springs, Florida. Photo: Joe Raedle/Getty Images

More than a dozen Republican-led states have announced they are terminating their involvement in federal pandemic-related unemployment programs early.

Driving the news: Many of the states' governors cited worker shortages. But some experts say it's the job climate, including pandemic-era factors, and not unemployment benefits that is determining when and how people return to work.

Companies turn to pay hikes to lure workers

Illustration: Brendan Lynch/Axios

More hourly workers are getting a pay bump. Thank the new war for employees.

Why it matters: To meet the demand that's only expected to get more ferocious as reopening continues, companies are having to bid up to attract workers.