JUST IN: Trump Rolls Back Major Obama Rule

JUST IN: Trump Rolls Back Major Obama Rule

A stupid, expensive old Obama-era rule for pools has now been closed.

People in the service industry who relied on happy customers were banned under an Obama regulation from pooling their tips and dividing them among the staff.

If you haven’t been in the service industry for a while, a common practice that had been eliminated under Obama’s Labor Department prevented the wait staff from sharing tips with the people who supported them at restaurants and bars. In the pool system, a customer would tip their waiter, and the waiter would give up a portion of their tips to be divided among the dishwashers, hostesses and bar backs who were generally not tipped by customers, but whose low paid work made it possible for a waiter to give great service to a client.

The regulation, which was under the Fair Labor Standards Act, prevented employers from enforcing tip-pooling. So, unless the waiter wanted to go through the trouble of figuring out who on staff deserved to be tipped out of their own stash, the other employees would not benefit from the 15% that was left behind on the table. According to the Labor Department.

“These ‘back of the house’ employees contribute to the overall customer experience, but may receive less compensation than their traditionally tipped co-workers.”

And so, in that same release, the Department said they would make the change in hopes to lose the pay gap between the wait staff and the back house of restaurants and bars. Patrons and clients may not have even known, and tipped well expecting that it would be handed down to the others that helped get them their drinks and food.

Some workers’ groups are saying that this will make it easier for employees to take tip money out for themselves, which is not what the regulation intends to do. Generally, the tips are counted in the open with the ledger available to all on staff. The National Restaurant Association is happy with the move because they hope this will keep their members’ staff happy and better paid. Restaurants had been struggling to deal with the pay for their employees, because their servers were keeping so much in tips while their other staff had much lower take-home pay in comparison.

This is a better move than what the crazies in California recently instituted, which raised the minimum wage to $15 per hour, causing job losses and cut hours across the board.

Margaret M.

Internet Specialist at Warfare Media.

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