Paul DeCamp, a Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s Washington, DC office, was featured on the radio show AirTalk with Larry Mantle, in the segment “Tipping Point? Labor Department May Rollback Obama-Era Rule Mandating That Tips Are Property of Servers.”

Following is an excerpt:

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.



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