President Trump’s Labor Department announced plans Monday to repeal an Obama-era rule that bans employers from pooling the tips of workers who make full minimum wage and share them with non-tipped workers.
The National Restaurant Association has long called for the rule to be changed.
“These ‘back of the house’ employees contribute to the overall customer experience, but may receive less compensation than their traditionally tipped co-workers,” the Labor Department said.
The Hill added:
The agency said the proposed rule would not affect employees who make less than the minimum wage and earn tips to supplement their pay, also known as tip credit.
When the Labor Department first signaled in the semi-annual regulatory agenda that it was changing the rule, worker advocates argued it could allow employers to do whatever they wanted with the tips — including taking a cut themselves.
Once the proposed rule is published in the Federal Register, the public will have 30 days to comment.