Pros & Cons of Tip Regulation
DOL’s Proposed Rule on Tip Regulations Under the FLSA
The Fair Labor Standards Act of 1938 (FLSA) established minimum wage and pay standards for employees working in the private sector and in federal, state, and local governments. Since its enactment, the FLSA has undergone several changes. The most recent update to the law came through the Consolidated Appropriations Act of 2018 (CAA), in which Congress addressed the issue of employee tips and the treatment of “tipped employees.” Congress made it clear that employers, managers, and supervisors are not allowed to keep any portion of the tips earned by their employees. Congress also suspended parts of the 2011 Department of Labor (DOL) rule (76 FR 18832) that prohibited certain employers …
