October 7, 2019 / 8:48 PM / a month ago

Department of Labor unveils proposed tip-pooling rule

The U.S. Department of Labor on Monday proposed a rule that would allow many restaurants and other employers to pool workers’ tips and distribute them to nontipped workers such as cooks and dishwashers.

The proposal published in the Federal Register comes after the department in 2017 stopped enforcing an Obama-era rule that restricted tip pooling under the federal Fair Labor Standards Act. Business groups had criticized that rule, saying it deprived back-of-the-house employees of higher wages.

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