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Westlaw News

DOL issues final rule EPI says will wipe out $700 mln in wages for tipped workers

The U.S. Department of Labor on Tuesday finalized a rule that will allow restaurants and other businesses to pay workers the lower tipped minimum wage when they perform nontipped tasks, which has been criticized by worker advocates and Democrats.

The rule unveiled by DOL’s Wage and Hour Division also includes regulations implementing a 2018 law that allows employers to pool workers’ tips and distribute them to non-tipped employees, such as cooks and dishwashers, while barring businesses from pocketing any tips or sharing them with managers and supervisors.

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