Labor Department Issues Rule on Workers’ Tips

Employers who take employees’ tips subject to penalties regardless of repetition or wilfullness.

Last week, the Department of Labor announced a final rule that allows the department to fine employers that take tips that are earned by their employees whether or not the employers’ action has been willful or repeated. The department can impose a civil penalty of $1,100 when an employer keeps workers’ tips. The rule also stated that employers and managers are not eligible to receive tips from mandatory tip pools at restaurants. 

“Workers who depend on tipped wages are every bit as entitled to expect to keep what they’ve earned as other workers,” said Labor Secretary Walsh. “An employer who withholds workers’ tips in violation of the law deprives them of that security and, in some cases, leads to workers earning less than the federal minimum wage. This final rule helps us protect their earnings by strengthening tools to hold employers legally responsible for those violations.”

As the Lord Leads, Pray with Us…

  • For the Labor Department as it seeks to protect workers’ wages.
  • For Secretary Walsh to be effective in protecting the rights of employees. 
  • For U.S. employers to comply with laws and regulations regarding tip income. 

Sources: Department of Labor


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