Proposed Regulation Would Change How Tipped Workers Get Paid

After you eat at a restaurant and leave a tip on the table, does the waiter or waitress who served you get to keep the tip? Most restaurant-goers in the United States probably believe so, but a recently proposed U.S. Department of Labor regulation would allow employers to keep all the tips left for their employees. The proposed regulation, which would affect at least 1.3 million waiters, waitresses, and bartenders in the United States, would roll back an Obama-era regulation that required all tips to be returned to employees. The proposal would repeal this language and allow employers under certain circumstances to pocket the tips earned by employees. What could the employer do with those tips? The Labor Department lists a number of possibilities, including that employers could lower prices, invest in capital improvements, provide benefits to workers, increase work hours, or hire additional workers. Employers could also keep the tips to boost their own profits at the expense of…

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