John Mavros and David Rashé of the Irvine office authored the article, "Why Tip-Pooling Could Be Making a Comeback” featured in FSR Magazine. In this article, John and David discuss the Department of Labor’s proposal to partially rescind the previous strict 2011 regulations on tip-pooling, which decided what constitutes a “tip” and who receives it. This interpretation favored front-of-house employees and led to numerous lawsuits.
John and David explained that before 2011 the tip pooling arrangements involved front-of-the-house staff sharing total tips received with back-of-the-house staff. The new proposal will reinstate that arrangement with the intention of decreasing wage disparities between front-of-the-house and back-of-the-house employees, incentivize all restaurant employees to strive to improve the customer experience and give restaurants discretion on how they compensate their employees.
To read the full article, visit FSR Magazine.