The Supreme Court Might Get to Decide If Tip-Pooling Is Legal

January 24, 2017

Here’s why that’s problematic

Late last week, the National Restaurant Association (often called “the other NRA”) petitioned the U.S. Supreme Court to hear a case to decide if employee tips may be collected by the employer and redistributed or pooled among tipped and/or non-tipped employees. In 2011, in response to a court ruling, the Department of Labor amended the Fair Labor Standards Act (FLSA) to specifically outlaw the practice of sharing tips between tipped employees and non-tipped employees, arguing that employers could use that leniency to pay its traditionally-non-tipped employees a lower minimum wage. In its recent petition, the NRA