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Court Ruling Holds Important Implications for Tip Pooling

Court Ruling Holds Important Implications for Tip Pooling

Ruling bans restaurants from splitting pooled tips between servers and back of house employees

Restaurants who utilize tip pooling to bridge the wage disparities between front and back of house workers are most affected by the ruling.

The latest in the struggle to find a compensation system that satisfies workers at all levels of the restaurant service industry is a court ruling in the U.S. Department of Labor regulations limiting tip pools to front of house workers who customarily receive tips, according to Restaurant Hospitality.

This means that kitchen staff and other back of house workers are no longer able to receive a portion of tip pools, which presents an issue for restaurant operators who rely on tip sharing to help bridge the wage gap between front and back of house workers. Restaurants affected by the ruling are those in states that don’t allow a tip credit and fall within the Ninth Circuit, which includes California, Washington, Oregon, Alaska, Nevada, and Montana.

Paul Schlienz, communications manager for the Seattle-based Washington Restaurant Association, writes to members, “From a practical standpoint, changing the tip pool now to address this ruling will require a lot of administrative issues, changes to compensation structure, impact employee morale, and create other challenges. This is a big change, and you may end up changing back to your current model if the 9th Circuit then changes its ruling, if a request for review is made and granted.”


What Is My Legal Obligation to Pay Employees?

Times are tough for many companies, and when cash is short it is tempting to try to save money by delaying payment to employees or not paying terminated employees. But paying employees is one of your top legal obligations as an employer. If you have employees, you must pay them.

  • Laws relating to paying employees
  • How to deal with wage complaints
  • How the bankruptcy of your company affects your responsibility to pay employees

What Is My Legal Obligation to Pay Employees?

Times are tough for many companies, and when cash is short it is tempting to try to save money by delaying payment to employees or not paying terminated employees. But paying employees is one of your top legal obligations as an employer. If you have employees, you must pay them.

  • Laws relating to paying employees
  • How to deal with wage complaints
  • How the bankruptcy of your company affects your responsibility to pay employees

What Is My Legal Obligation to Pay Employees?

Times are tough for many companies, and when cash is short it is tempting to try to save money by delaying payment to employees or not paying terminated employees. But paying employees is one of your top legal obligations as an employer. If you have employees, you must pay them.

  • Laws relating to paying employees
  • How to deal with wage complaints
  • How the bankruptcy of your company affects your responsibility to pay employees

What Is My Legal Obligation to Pay Employees?

Times are tough for many companies, and when cash is short it is tempting to try to save money by delaying payment to employees or not paying terminated employees. But paying employees is one of your top legal obligations as an employer. If you have employees, you must pay them.

  • Laws relating to paying employees
  • How to deal with wage complaints
  • How the bankruptcy of your company affects your responsibility to pay employees

What Is My Legal Obligation to Pay Employees?

Times are tough for many companies, and when cash is short it is tempting to try to save money by delaying payment to employees or not paying terminated employees. But paying employees is one of your top legal obligations as an employer. If you have employees, you must pay them.

  • Laws relating to paying employees
  • How to deal with wage complaints
  • How the bankruptcy of your company affects your responsibility to pay employees

What Is My Legal Obligation to Pay Employees?

Times are tough for many companies, and when cash is short it is tempting to try to save money by delaying payment to employees or not paying terminated employees. But paying employees is one of your top legal obligations as an employer. If you have employees, you must pay them.

  • Laws relating to paying employees
  • How to deal with wage complaints
  • How the bankruptcy of your company affects your responsibility to pay employees

What Is My Legal Obligation to Pay Employees?

Times are tough for many companies, and when cash is short it is tempting to try to save money by delaying payment to employees or not paying terminated employees. But paying employees is one of your top legal obligations as an employer. If you have employees, you must pay them.

  • Laws relating to paying employees
  • How to deal with wage complaints
  • How the bankruptcy of your company affects your responsibility to pay employees

What Is My Legal Obligation to Pay Employees?

Times are tough for many companies, and when cash is short it is tempting to try to save money by delaying payment to employees or not paying terminated employees. But paying employees is one of your top legal obligations as an employer. If you have employees, you must pay them.

  • Laws relating to paying employees
  • How to deal with wage complaints
  • How the bankruptcy of your company affects your responsibility to pay employees

What Is My Legal Obligation to Pay Employees?

Times are tough for many companies, and when cash is short it is tempting to try to save money by delaying payment to employees or not paying terminated employees. But paying employees is one of your top legal obligations as an employer. If you have employees, you must pay them.

  • Laws relating to paying employees
  • How to deal with wage complaints
  • How the bankruptcy of your company affects your responsibility to pay employees

What Is My Legal Obligation to Pay Employees?

Times are tough for many companies, and when cash is short it is tempting to try to save money by delaying payment to employees or not paying terminated employees. But paying employees is one of your top legal obligations as an employer. If you have employees, you must pay them.

  • Laws relating to paying employees
  • How to deal with wage complaints
  • How the bankruptcy of your company affects your responsibility to pay employees