US DOL announces a new proposed rule on advice and grouping

Wednesday, October 9, 2019

The tips and gratuities policies have led to numerous debates among legislators, regulators, and courts that have led to confusion, new litigation, and in many cases, significant liability or regulation for hospitality employers. The US Department of Labor ("DOL") today released a regulatory proposal to clarify the Disruption of the Tipping Law and the agencies' earlier regulations and interpretations. I describe below some of the notable elements of these proposed rules.

The proposed regulations codify the recent guidelines from the Labor Department, in which employers, during which a paid work employee can take a tipping credit for any period of time does not perform tasks penalties at the same time performing tasks or homework within a reasonable time immediately before or later. The draft regulation explicitly mentions the server's duty to occasionally clean and set up tables, roast bread, make coffee and wash dishes or glasses. These are temporary tasks for which a tip can be credited. In addition to these examples, the proposal for a regulation provides that a non-tipping task is associated with a tipping related profession if the task is identified as a task in a profession that gives a tip to the career information network (O * Net). This, however, is different from the work that is not related to the profession of the end, and which is then considered a "duplication" that can not be credited with a tip.

The proposed new regulation also reaffirms the provision of the Law on Consolidated Loans of 2018, which prohibits employers, managers and supervisors from keeping tips received from workers.

In addition, the DOL will amend its statute to eliminate a language that limits the use of tips by the employer if the employer does not charge tips , which means that traditional employees such as cooks and dishwashers can participate. In a pool However, the proposed new regulation does not affect the existing rules that employers accepting gratuities for unpaid salaries can keep a range of gratuities between unpaid and non-employed workers who do not. They usually do not receive regular benefits gratuities.

The comment period for this regulatory proposal runs until 9 December 2019, after which the DOL will publish and implement a final rule.

I will not fail to inform you of the status of this regulation as the situation develops.

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