Final Tip Rule

On September 23, 2021, the U.S Department of Labor (DOL) announced that the publication of its Tips CMP final rule will be on the 24th, and under it:

• The DOL can assess penalties—of up to $1,100 per violation—against employers who take the tips their employees earned, regardless of whether it was repeated or willful; and

• The 2020 Tip final rule was clarified by explaining that although managers and supervisors are prohibited from receiving tips from mandatory tip pools, they can contribute to them for eligible employees.

The final rule is effective November 23, 2021.