The Trump administration wants restaurant workers to share tips. Opponents fear their bosses will snatch them.
The Department of Labor indicated on Monday that it would seek to reverse the tip-sharing ban enacted during the Obama administration, proposing that the reversal “would help decrease wage disparities between tipped and non-tipped workers.” The proposed change would apply only to companies that pay tipped employees at least the federal minimum wage of $7.25 an hour; compensation from a tip pool would be shared with non-tipped workers such as cooks and dishwashers. Traditionally, federal law has banned companies from forcing workers to share tips if the tipped workers don't at least receive the minimum wage; this expanded in 2011 to cover all tipped workers — which was challenged in federal court. Worker advocacy groups took umbrage at the news, fearing that employers would feel free to absorb tips themselves. While servers in upscale restaurants can earn high wages and tips, the average wage for servers is $9.61 and for dishwashers and bartenders, $10. Restaurant groups are in favor of the proposal as a way to support more lower-paid workers, such as those who work in the kitchen, and that restaurants which abused the shared tipping pool would face economic consequences such as high employee turnover and lawsuits.
See "The Trump administration wants restaurant workers to share tips. Opponents fear their bosses will snatch them.", Danielle Paquette, The Washington Post, December 4, 2017