Baldwin Haspel Burke & Mayer LLC

Employment Law Update: Tip Pooling Update

Lance Arnold - 

Buried in the Consolidated Appropriations Act is a Congressional amendment to the Fair Labor Standards Act (FLSA) effective in March 2018. It revises Section 203(m), which covers tipped employees, notably clarifying that “an employer may not keep tips received by its employees for any purposes, including allowing managers or supervisors to keep any portion of employees’ tips, regardless of whether or not the employer takes a tip credit.” In addition, certain regulations adopted in 2011, except as addressed by the revisions, have no further force and effect, until the Department of Labor takes further action.

Employers should review their current practices for compliance.

If you have any questions regarding this employment matter, please contact Lance Arnold at 504.569.2900 or larnold@bhbmlaw.com.


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