Restaurant owners and hospitality operators try to decide what’s the next step in tip sharing with support staff
According to a recent story in Nation’s Restaurant News, restaurant and hospitality business owners are mulling next steps after the federal appeals court ruling on Tuesday about tip pooling.
The San Francisco-based U.S. Ninth Circuit Court of Appeals, in a 2-1 decision, upheld a 2011 Labor Department rule that states businesses can’t share tips given to waiters and hospitality service staff with other support staff such as a hostess or dishwasher, even if the employees who are being tipped are paid minimum wage.
Restaurant associations are now debating what’s next as many did not expect this ruling. A legal response is surely being formulated and we’ll keep an eye on how this develops.