The Labor Department (DOL) this week proposed regulations to implement amendments made to the federal Fair Labor Standards Act (FLSA) in 2018 related to the FLSA’s tip credit, tip ownership rules, and related enforcement provisions.
DOL had originally proposed revising its tip regulations in 2017, ostensibly to align them with federal court decisions interpreting the regulations. The proposal was considered controversial, however, and Congress responded by amending the FLSA to make clear that employers were prohibited from keeping tips, while at the same time not prohibiting employers from creating tip pools that include workers who do not customarily and regularly receive tips.
DOL is soliciting public comments on its proposal until December 9, 2019. A copy of DOL’s proposal, as published in the Federal Register on October 8, 2019, is available online.
Members of the Center for Workplace Compliance (CWC) can read more here.