New rule may allow employers to take more of employees tips to pay other workers

But imagine all the money the cooks and dishwashers would make if they could give lap dances.

And folks think Biden's government will be socialist. though, to be fair, this is more fascist than socialist.

smdh

Almost everything removing the incentive for strippers to hustle for tips is bad for the PLs.

A more boring discussion though is identified near the end of the article- the new rule incentivizes employers to pay dishwashers and untipped positions with tips. This is the lede. This rule saves money for hotel and restaurant employers. Sound like any presidents you know? Those employers have to comply with minimum wage laws, and the minimum wage is going up in a lot of states in the next few years. In some places as high as $15 per hour. If an employer was able to transfer tips from servers to dishwashers, the employer shifts the compensation burden to pay the dishwasher minimum wage in some large part to the rest of the staff. The employer must still comply with minimum wage law, but its share of that burden is reduced.

I don’t know if it’s good or bad. I do feel confident that it is upsetting the existing system and is cutting costs for the employer and redistributing wealth from the tipped employees to all employees. Doesn’t sound like capitalism at all.

I thought it was standard practice for tips in most restaurants to be shared with wait staff, kitchen staff, bus staff, and host staff. Bars and strip clubs should be different, mostly because you are tipping an indivodual for their individual service as opposed to the entire experience. I don't think this will affect most scrupulous strip clubs. I can see how they might collect and pool stage tips from the "make it rain" crowd, but tips collected behind closed curtains should be exempt.

Gammanu95 while it is common for tips to be shared in restaurants this new rule is different. Instead of the shared tips being given to the other staff in addition to their hourly wage it can now be taken by the business to help pay part of the hourly wage for the other employees.

In Massachusetts the rule on pooled tipping is that service employees and service bartenders are the only people who can share in tips (no managerial or employer can share) and then only in proportion to the service provided. Out of a $200.00 room the bartender would get nothing, the door man $ 1.00 and the dancer $199.00. State law stands on this issue.

Sounds like Mass has a good law on this, but other states aren't so lucky.

Pooling tips hasn't created an exodus of wait staff in restaurants.

What employee dancers earn is basically commission on dances and the tips are on that commission. Tip out etc is taken out of their hourly wages not tips.