Paul DeCamp, Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s Washington, DC office, was quoted in Law360, in “House Democrats Propose Bill Restricting Tip Pools,” by Braden Campbell. (Read the full version – subscription required.)

Following is an excerpt:

Two congresswomen proposed a bill Wednesday that would block businesses from redistributing tipped workers’ tips without their permission, a day after Labor Secretary Alex Acosta told them he would support a measure that stopped employers from keeping their workers’ tips.

The Tip Income Protection Act, or TIP Act, would amend the Fair Labor Standards Act to block employers from pooling and redistributing workers’ tips unless the workers opt into the pool. The bill is sponsored by Rep. Rosa DeLauro, D-Conn., and Rep. Katherine Clark, D-Mass.

The bill would effectively codify a 2011 U.S. Department of Labor rule stating that tips are the property of the worker who earns them even if their employer doesn’t take the so-called tip credit, an FLSA provision that lets businesses pay workers less than the federal minimum wage if the difference is made up in tips. The FLSA lets businesses pool the tips of workers as long as they’re paid at least the minimum wage, however. …

But the proposal “goes far beyond” the measure Acosta pledged to support in Tuesday’s hearing, said Epstein Becker Green national wage and hour practice group co-chair Paul DeCamp, who represents restaurant groups including the National Restaurant Association in a U.S. Supreme Court challenge to the rule.

“Virtually all of the public debate over DOL’s proposed rule has focused on the concern that employers might start keeping customer tips,” DeCamp wrote in an email to Law360. “This bill, however, starts by outlawing mandatory tip pools … even if the employees keep 100 percent of the tips.”


Jump to Page

Privacy Preference Center

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.