Franchisor Stories
Tip Pooling Rule has Operators Standing Up and Taking Notice
Restaurant owners and hospitality operators try to decide what’s the next step in tip sharing with support staff
According to a recent story in Nation’s Restaurant News, restaurant and hospitality business owners are mulling next steps after the federal appeals court ruling on Tuesday about tip pooling.
The San Francisco-based U.S. Ninth Circuit Court of Appeals, in a 2-1 decision, upheld a 2011 Labor Department rule that states businesses can’t share tips given to waiters and hospitality service staff with other support staff such as a hostess or dishwasher, even if the employees who are being tipped are paid minimum wage.
Restaurant associations are now debating what’s next as many did not expect this ruling. A legal response is surely being formulated and we’ll keep an eye on how this develops.
To read the original story, click here.
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About the Author
Nick Powills
FollowNick Powills, CFE, founded No Limit Agency in 2008 and serves as Chief Brand Strategist for the Chicago-based firm. No Limit is a full-service communications agency that establishes and elevates brands by bridging Public Relations, Social Media, Marketing, Advertising, Digital, and a lot of creativity, to best strategize well-rounded and successful campaigns for 50+ global franchise brands. By presenting visionary ideas and building real relationships, No Limit is able to create effective media branding strategies to help companies grow. Nick currently leads a staff of writers, media strategists, designers, social media experts and digital producers in an office think-tank where brands are humanized for strong, compelling media stories. Prior to starting No Limit at the age of 27, Nick spent four years working at a franchise PR agency where he mastered the art of building rapport with media outlets and creating newsworthy pitches for earned media placements. He holds a Bachelor of Journalism from Drake University in Iowa.
