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ARTICLE · 04 JANUARY 2021

Cooks And Dishwashers Can Share In Servers' Tips Under DOL Final Rule

Lewis Brisbois Bisgaard & Smith LLP
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On December 22, 2020, the Department of Labor (DOL) issued final rules for pooling tips among employees of hospitality businesses, an industry severely impacted by COVID-19.

United StatesEmployment and HR
Lewis Brisbois Bisgaard & Smith LLP
Lewis Brisbois Bisgaard & Smith LLP
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On December 22, 2020, the Department of Labor (DOL) issued final rules for pooling tips among employees of hospitality businesses, an industry severely impacted by COVID-19. Where an employer provides the standard minimum wage, the final rule established by the DOL allows the employer to establish a tip pool that includes cooks, dishwashers, and other back-of-the-house employees who ordinarily are not permitted to share tips under the Fair Labor Standards Act. 

In addition, the final rule (1) prohibits employers from keeping employees' tips for any purpose, which extends to managers and supervisors; and (2) employers that collect tips as part of a mandatory tip pool must fully redistribute the tips no less often than when the employer pays employee wages. 

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