Ninth Circuit Rules No Tip Pooling Among Employees who are not Normally Tipped
APPLIES TO All Employers who Utilize Tip Pooling Arrangements in Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington |
EFFECTIVE February 23, 2016 |
QUESTIONS? Contact HR On-Call (888) 378-2456 |
Employers in service industries should take note of the recent decision in Oregon Restaurant & Lodging Assoc. v. Perez, where the Ninth Circuit Court of Appeals upheld a U.S. Department of Labor (DOL) regulation which states that employers cannot require tipped employees to share their tips with untipped employees. Prior to the decision in the Oregon Restaurant case, there was an ongoing debate among District Courts in the Ninth Circuit regarding the enforceability of the DOL regulation, causing some employers to disregard the DOL regulation entirely.