However, in a few states, such as New York and Massachusetts, due to the particularities of state law, it remains illegal to share tips with back of the house even if the restaurant pays the full minimum wage.
Busboy minimum wage free#
The change in the law means that restaurant operators in most states - including the seven states that do not have a tip credit (California, Oregon, Washington, Nevada, Minnesota, Montana and Alaska) - are now free to ask servers to tip out the back of the house provided they pay employees at least the full minimum wage for all hours worked. This is a departure from the older rules, which did not allow such sharing of tips between traditionally tip-earning staff (bartenders, servers) and non-tip-earning staff (cooks, dishwashers). It allows tip sharing between tipped and non-tipped employees - for example, between servers and cooks - if a restaurant pays the full minimum wage (does not take a tip credit) to all employees. The new law makes another critical change. The bill expressly prohibits employers, managers, or supervisors from collecting or retaining tips made by employees - one of the biggest concerns opponents had against the Department of Labor’s recent, and widely hated, proposal. Tucked inside, on page 2,205, were hard-won, far-reaching amendments to the Fair Labor Standards Act (FLSA) offering protections for tipped workers. On March 23, the government passed a 2,232-page budget spending bill.
But the Trump administration made a drastic change to that rule earlier this year. Since 2011, servers have not been allowed to share tips with the cooks or dishwashers behind the kitchen doors. This is called “tipping out” in industry parlance, and it’s a fluid and frequent practice of sharing the (tip) wealth. Once that’s reconciled, they file the money and receipts away, and, depending on the restaurant, might pass a few bucks from their take-home tips to the bartender, food runner, busser, or hostess. It’s a scene that plays out at the end of the night at most restaurants across the country: Servers, tired from a long shift and ready to clock out, must count the cash that’s in their pockets and match it with the sales and tips they earned that day.
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