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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

By Nick Powills1851 Franchise Publisher
SPONSOREDUpdated 9:09AM • 02/26/16
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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