USDOL Publishes Tips CMP Final Rule

The U.S. Department of Labor (USDOL) has publsihed the Tips CMP Final Rule that restores the USDOL’s ability to assess civil money penalties (CMPs) of up to $1,000 per violation against employers who take tips earned by their employees, regardless of whether those violations are repeated or willful. The rule also clarifies that while managers or supervisors may not receive tips from mandatory tip pools, they are not prohibited from contributing tips to eligible employees in sch pools. The Tips Regulations Under the Fair Labor Standards Act final rule takes effect Nov. 23, 2021; it resolves the delayed portions of the 2020 Tip Final Rule, which otherwise became effective on April 30, 2021.