Impact of legalizing pool tipping

By  | 

MINOT, N.D. - The Trump Administration wants to legalize pool tipping, which would require servers to turn in their tips.

The restaurant employer would then decide how to redistribute the money as they see fit.

A rule under the Obama Administration allowed restaurant employees to keep their earned tips at the ends of their shifts. The Trump Administration is now making efforts to change that rule, by legalizing pool tipping.

"Pool tipping would be if a server gets their tip, instead of it going directly to them, the restaurant itself would take it and split it amongst all of the employees that we have working there" said Lyle Sanders, General Manager of Grizzlys.

In a statement made by the Labor Department, tips would be distributed not only between servers, but between cooks, dishwashers and those employees behind the scenes.

"I think it's going to hurt businesses. There's people that go above and beyond service and then there are some that probably get by doing with the least amount that they can do" said Dean Aberle, owner of Homesteaders.

The current proposal reads that this, "would help decrease wage disparities between tipped and non-tipped workers." Ultimately closing the gap of inequality between cooks and servers.

The proposal also states that, "these 'back of the house' employees contribute to the overall customer experience, but may receive less compensation than their traditionally tipped co-workers."

Aberle said, "The servers are probably making a little bit more than the cooks do. Sometimes I see servers here tipping out the cooks anyway."

The Labor Department put forward the proposal on Dec. 4, and the public has 30 days to respond.

To review the proposal and find more information on how to submit comments to the Department of Labor you can visit: