Is Your Restaurant Sharing Tips Properly? Three Questions You Might Have

3 Min Read By Ashley Wilkinson

Who has their hand in the tip jar? Certainly not the people in charge anymore. 

Recently, the owner of a small business asked our firm if a manager performing the duties of a server on an understaffed day would be able to keep the tip they received or share in the tip pool. Unfortunately, for the manager, she was not legally allowed to.

The situation some may find regrettable is a consequence stemming from a provision squeezed in Congress’ massive spending bill, which was passed by lawmakers and signed by President Donald Trump in the spring. The owner’s inquiry is a reminder that people in the restaurant industry should familiarize themselves with the new rules implemented by the Tip Protection Act of 2018.

Here are three questions you might have:

 

What are the changes? 

The act really is just an amendment to 1938’s Fair Labor and Standards Act and attempts to protect tips earned by employees. Changes during the Obama administration had caused confusion and pushback by…