The Labor Department has changed its policy of not policing tip pools. The agency recently issued a bulletin to all staff instructing them to assess violations dating back to March 23, 2018, on employers who either keep tipped workers’ tips or share those tips with management staff. This instruction is based on the new law which limits an employer’s ability to withhold or redistribute tipped workers’ tips. Specifically, an employer cannot keep tipped workers’ tips or give those tips to management staff, but it can allow tipped workers’ to share tips with nontipped workers. This is particularly relevant to the restaurant and service industries.

The full DOL Bulletin can be found here: