In an article published on Friday, April 20 by Modern Restaurant Management, Molly Gwin discusses Congress’ recently amended Fair Labor Standards Act (FLSA) which removes the prohibition on tip pooling. The amendment to the FLSA does not allow employers to keep tips received by its employees for any purposes, including allowing managers or supervisors to keep any portion of employees’ tips, regardless of whether or not the employer takes a tip credit, Gwin details, “Notably, the amendment now permits tip sharing between tipped and non-tipped employees (excluding managers and supervisors), as long as the employer pays full minimum wage rather than the tipped minimum wage to its employees and does not take a tip credit.”
For the full article, you may click here.
