Last-minute Trump Administration law will enable restaurant owners to pull wait staffers’ tips

Dece4mber 24, 2020

One of the final pieces of legislation rolled out by the Trump Administration will reportedly allow restaurant bosses to save money by taking tips away from their serving staff to help pay “back-of-house staff” such as cooks and dishwashers, The Daily Beast reports.

According to Business Insider, the new rule was published on Tuesday, December 22, by the U.S. Department of Labor.

“This final rule provides clarity and flexibility for employers and could increase pay for back-of-the house workers, like cooks and dishwashers, who have been excluded from participating in tip pools in the past,” said Wage and Hour Administrator Cheryl Stanton in a statement released by the DoL. “Newly allowed tip sharing may incentivize the inclusion of these previously excluded workers and reduce wage disparities among all workers who contribute to customers’ experience.”

Restaurant managers and owners would not be permitted under the law to keep any portion of the tips for themselves.

The new rule won’t take effect until after President Donald Trump leaves the White House, so it’s possible that President-elect Joe Biden could work to rescind it. Tipped staffers can earn as little as $2.13 an hour in wages from their employer.

Research contact: @thedailybeast

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