Understanding TIP Credits, Pooling, Sharing
March 23, 2018 saw the signing by President Trump of a new bill into law that addressed multiple spending areas, one of which was “a plan to scale back the administration’s proposed tip pooling regulation from late 2017.” The bill did rescind the 2011 regulation that prohibited tipped employees from sharing with non-tipped employees, but only when an employer pays his/her tipped employees full minimum wage. Tipped employees who are paid at least the prevailing minimum wage can now legally share their tips with non-tipped employees. The bill also stipulates that employers, managers, supervisors, etc., cannot collect or retain tips earned by employees.2 To better understand Tip Credits, Tip Pooling and Tip Sharing, each is discussed below, along with a …
