For years, the Department of Labor has been arguing with various restaurant associations over whether or not it’s fair for restaurant owners to share waiters’ tips with people who work in the kitchen. Now, the restaurant associations are taking the fight to court.
Right now, Department of Labor regulations prohibit “back-of-the-house” employees (like the kitchen staff) from sharing tips that are left behind for “front-of-the-house” employees (like waiters and waitresses). However, restaurant employers say fairness dictates that back-of-the-house employees should be included in these tip pools.
But what about the wait staff? Isn’t it unfair to take tip money out of their pockets?
Thanks to current labor laws, they’re already handing over a portion of their tips over to the kitchen staff in certain situations. Right now, if a waiter is paid the full federal minimum wage rate and the restaurant does not take a “tip credit”, his restaurant is authorized to require that part of his tips go to the cooks and dishwashers working in the back. At least that’s the rule according to one court’s interpretation of the law.
However, the Department of Labor is holding firm — saying that the tip money is the sole property of the tipped employee, no matter what.
It’s up to the courts to decide where your tip money can go, so stay tuned!