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Professional Service Agreement

Congress Prohibits Employers From Keeping Tips

April 16, 2018

The Consolidated Appropriations Act (CAA) has circumvented a proposal from the U.S. Department of Labor (DOL) that would have required wait staff to share tips with owners, supervisors, and managers. Employers who pay the full federal minimum wage may now allow non-traditionally, non-supervisory tipped workers, such as cooks and dishwashers, to participate in tip pools. The CAA also increased employer penalties for tip theft.