On Sept. 23, the U.S. Department of Labor announced a final rule that will amend Fair Labor Standards Act (FLSA) regulations for tipped employees. The final rule was publicized in the Federal Register on Sept. 24, 2021, and is expected to become effective on Nov. 23, 2021.
Tips for Managers and Supervisors – The final rule prohibits managers and supervisors from keeping any portion of an employee’s tips, regardless of whether the employer takes a tip credit. New language in the FLSA regulations clarifies that managers and supervisors may only keep the tips they receive directly from customers based on the services they directly and solely provide.