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Changes to federal tipping laws as of March 1, 2021

On Behalf of | Apr 8, 2021 | Employment Law

Many tipped workers, such as food servers, delivery drivers and ride-sharing drivers in Oregon rely on this gratuity to make ends meet. This is especially in today’s economic climate, given that many service workers were furloughed or out of employment in 2020. Therefore, it is important that they understand their rights under federal tipping laws, which have changed as of March 1, 2021.

What can’t an employer do?

Under federal law, employers cannot keep a worker’s tips, regardless of whether the employer takes a tip credit. In addition, managers and supervisors are prohibited from keeping a part of a worker’s tips. These laws are in place to protect employees who earn tips.

Tip pooling

Currently, employers who claim a tip credit are responsible for ensuring that any tip pools only include workers who customarily receive tips, such as servers. In comparison, cooks and dishwashers who generally do not get tipped should not be able to participate in the tip pool unless an employer does not take a tip credit and implements mandatory tip pools to include these types of employees.

Learn more about wage and hour laws

Many service industry workers were hit hard financially in 2020. Now that businesses are opening back up, it is more important than ever that service industry workers are able to keep tips that they rightfully earned. The above information is for educational purposes only and does not contain legal advice. Readers of this blog who want further information about employment law are encouraged to explore our firm’s website to learn more.