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Workforce

DOL plans to cut restaurants less slack on tip theft

The department said that it would penalize restaurants up to $1,000 for dipping into employees' tips, even if it was inadvertent.

Workforce

Federal judge halts union's attempt to kill the tip credit through the courts

A suit alleging the credit is discriminatory and a major cause of sexual harassment was dismissed in part because the union group was pursuing an ideological objective.

The lawsuit by One Fair Wage against Darden Restaurants contends the credit is a violation of federal anti-discrimination rules.

Starting in May, restaurants that don't use a tip credit can include back-of-house workers in the pool.

But other industries will lose that break for employers under proposals that were put forth this week.

Their attorneys general say DOL’s proposed new guideline would be illegal and an intended solution to problems that aren’t evident.

Opening tip pools to kitchen staffers would be permitted if a tip credit isn’t taken, and the 80/20 rule would be dashed.

I should be participating in a press event that intends to tie use of the tip credit to slavery. But it wouldn't have me.

DOL's Wage and Hour Division was instructed to no longer use that standard, despite a court challenge.

The reissue of guidelines tossed in 2009 are expected to shield full-service establishments from lawsuits alleging underpayment of servers.

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