Trump administration could roll back tip-pooling rule - Spokane, North Idaho News & Weather KHQ.com

Trump administration could roll back tip-pooling rule

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WASHINGTON -

The Labor Department on Monday opened up 30 days of public comment on its proposal to eliminate an Obama administration rule that allowed restaurant employees to keep their tips instead of being forced to share them with non-tipped workers.

The Labor Department said in a statement that the rule had contributed to pay disparities between servers and other restaurant staff. NBC News reports the Trump administration stopped enforcing the rule nationwide when it first announced the proposal in July. 

Under current law, employers who pay tipped minimum wage, which is less than the standard minimum, can't pool tips and share them with non-tipped workers. The Obama rule passed in 2011 also banned the practice from businesses that pay the higher minimum wage.

The rule has been criticized by industry groups who say tip pooling is necessary to address the compensation gap between servers and other staff members. But the Trump administration could face legal challenges by workers' rights groups.

The Supreme Court is reportedly considering whether to review a challenge to the tip-pooling ban by the National Restaurant Association and other groups.

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