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Tipping point? Labor Department may rollback Obama-era rule mandating that tips are property of servers

The Trump administration is seeking to overturn an Obama-era rule which specified that tips are the property of workers.

The Department of Labor’s rule in 2011 said that tips are the property of the server, but Labor Department under Trump wants to rescind the rule making tips the property of the employer instead. This would allow employers to redistribute tips among all staff.

The rule change is supported by the National Restaurant Association, which says this will allow for pooled tips and will help create equity between front-of-the-house and back-of-the-house staff. Opponents are concerned that making tips the property of employers will undermine workers and might lead to wage theft.

If you’re in the restaurant business, whether in the back-of-house, front or as an employer, we want to hear your thoughts.

Call in at 866-893-5722.

Guests:

Paul DeCamp, lead counsel for plaintiffs challenging the Labor Department’s “ban” on tip pooling; previously, DeCamp ran the Wage & Hour Division of the Department of Labor (2006-07); he’s currently a member with law firm Epstein Becker and Green in Washington D.C.

Raj Nayak, director of research for National Employment Law Project, advocacy group for low-wage and immigrant workers; he was in the Obama administratio when the 2011 rule was enacted