Proposed Changes to the Tip Regulations Under Consideration

Tip credit

The United States Department of Labor (DOL) has announced a potential rule change for tip provisions under the Fair Labor Standards Act (FLSA).

If enacted, the proposed change will provide those employers who do not currently take tip credit to create a tip pool. This pool would be shared among those workers who receive full minimum wage and already receive tips as well as those who do not currently receive tips, i.e. dishwashers, line cooks, etc.

Currently, federal regulations state that employers can take a tip credit toward minimum wage obligations for tipped employees, so long as it is equal to the difference between the mandatory cash wage of $2.13 per hour and the federal wage. The proposed change would not impact any regulations that currently allow employers to have a tip pool among traditionally tipped employees.

In Florida, the current minimum wage is $8.56 per hour and employers are currently allowed to take a tip credit of $3.02 per hour toward the minimum wage obligation for tipped employees. This means that in 2020, the amount a tipped employee must be paid in the State of Florida exclusive of tips is $5.54 per hour.

If you are an employee who is forced to share your tips with managers, owners, or other traditionally non-tipped employees, please contact USA Employment Lawyers today!

Legal Representation for Employees Who Are Forced to Share Tips

You work to make a living, and that living should not be compromised by unfair tipping regulations enforced by your employer. If you are currently being shorted of the rightful money owed to you, or taken advantage of in any other way, at the workplace, call us for help.

USA Employment Lawyers is available by phone or email, and your first case evaluation is free! Contact us online or call (800) 483-0998 to get started.

Related Posts
  • Is the tip pool at your work allocated properly? Read More
  • Can Companies Get Away with Not Paying Overtime? Read More
  • Is Fingerprint Clocking Legal In Illinois? Read More
/

Put the Law to Work for You

  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.
  • By submitting, you agree to be contacted about your request & other information using automated technology. Message frequency varies. Msg & data rates may apply. Text STOP to cancel. Acceptable Use Policy