- The Trump administration proposed a rule that would force waiters and bartenders to share their tips.
- Opponents of the rule fear that restaurant employers would pocket most of the tip money for themselves.
- One estimate pegged the amount employers could keep at $5.8 billion.
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Waiters and bartenders could be forced to hand over their tips under a proposed Trump administration rule
Restaurant servers could see their paychecks take a hit if a newly proposed change to the Fair Labor Standards Act goes through.
Restaurant servers could see their paychecks take a hit if a newly proposed Trump-administration policy goes through.
The Department of Labor proposed this month to roll back a 2011 Obama-era policy, The Fair Labor Standards Act, that allows restaurant employees to keep their tips instead of having to share them with their non-tipped employees.
Forcing servers to pool their tips could redirect some of their earnings to non-tipped workers, such as the line cooks who make hourly wages. However, opponents of the measure fear it will lead to employers pocketing the shared tip money for themselves.
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"This rule will result in a substantial shift of tips from workers to employers," a report from the think tank said.
According to Reuters, The Supreme Court is considering whether to review a challenge to the Obama-administration tip-pooling ban by the National Restaurant Association and other groups.
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