House Democrats Propose Bill Restricting Tip Pools

Law360 (March 7, 2018, 8:48 PM EST) -- Two congresswomen proposed a bill Wednesday that would block businesses from redistributing tipped workers' tips without their permission, a day after Labor Secretary Alex Acosta told them he would support a measure that stopped employers from keeping their workers' tips.

The Tip Income Protection Act, or TIP Act, would amend the Fair Labor Standards Act to block employers from pooling and redistributing workers' tips unless the workers opt into the pool. The bill is sponsored by Rep. Rosa DeLauro, D-Conn., and Rep. Katherine Clark, D-Mass.

The bill would effectively codify a 2011 U.S. Department of Labor rule stating that tips are...

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