What to Expect for Tip Pooling Regulation for the Rest of 2018 and Beyond | Modern Restaurant Management | The Business of Eating & Restaurant Management News

Over the last year, the law relating to tip-pooling has been in a state of flux. Additional changes are expected throughout 2018.It is important to understand the background of the tip rule changes to get a better grasp on the current state of the law and what the restaurant industry can expect moving forward.

Where Are We Now?Tip-pooling arrangements are typically those where “front-of-house” staff (i.e., wait staff, bartenders) share their tips with “back-of-house” staff (i.e., chefs, line cooks and dish washers) who might not receive tips directly. In 2011, the Department of Labor announced regulations that curtailed tip-pooling by prohibiting the distribution of tips with back-of-house employees, even where the employer was not taking a tip credit.

The DOL regulation provided that an employee may only be considered a tipped employee if he or she participated in the work that generated the tip. Thus, back-of-house staff, whose job duties do not include interacting with…

Joel Rice

Joel Rice is a partner in the Chicago office of Fisher Phillips, with nearly 25 years of experience representing employers. Over the course of his career, he has handled the defense of hundreds of employment-related matters before federal/state courts and numerous agencies. Rice has successfully argued multiple appeals in federal and state courts. He has extensive experience representing employers in complex litigation, including collective and class actions under federal and state wage and hour laws.

Michael Furlong

Michael Furlong is an associate in the firm’s Chicago office. He represents management in all areas of labor and employment law and has litigated employment matters before federal and state courts throughout the United States. He also has experience representing employers before the Equal Employment Opportunity Commission (EEOC) and state administrative agencies.

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Joel Rice

Michael Furlong