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Who owns a tip? Trump may shift it to restaurant owners
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| Contributor | RP |
| Last Edited | RP Oct 31, 2017 09:22am |
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| Category | Rule Change |
| Author | Aimee Picchi |
| News Date | Tuesday, October 31, 2017 10:55:00 AM UTC0:0 |
| Description | Working for tips isn't easy, but at the end of the day, waitstaff and other tipped workers can count on those gratuities ending up in their pockets.
That may change under the Trump administration. The Department of Labor has indicated it intends to rescind an Obama-era rule restricting restaurant owners from pooling tips, or taking tips from waitstaff and redistributing the money to workers throughout the restaurant, according to the National Law Review.
While the Labor Department hasn't yet disclosed details of the proposed rule, labor activists fear the new regulation will allow employers to take ownership of tips as long as their workers earn the federal minimum wage. Restaurant owners could then take the tips, pool them and divide the money among their employees. And some activists worry that owners might decide to keep a portion of the tips for themselves. |
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