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The U.S. Department of Labor (DOL) has issued its long-awaited
Final Rule addressing who may share tips under the Fair Labor Standards Act (FLSA) and the circumstances under which employers may use a tip credit.
The Final Rule will be effective 60 days after publication in the Federal Register.
Summary of Final Rule
e.g., servers in the restaurant industry) to pool tips with non-tipped workers (
e.g., cooks and dishwashers), so long as the employer does not take a “tip credit” (
i.e., paying tipped employees a direct wage below the minimum wage) and, instead, pays such workers a direct wage equal to or greater than the minimum wage. Many commenters have argued that permitting only servers to receive tips, which in many restaurants can be very lucrative, yet prohibiting the kitchen staff, who prepare the food, from receiving tips was unfair.
Wednesday, December 23, 2020
The U.S. Department of Labor (DOL) has issued its long-awaited
Final Rule addressing who may share tips under the Fair Labor Standards Act (FLSA) and the circumstances under which employers may use a tip credit.
The Final Rule will be effective 60 days after publication in the Federal Register.
Summary of Final Rule
e.g., servers in the restaurant industry) to pool tips with non-tipped workers (
e.g., cooks and dishwashers), so long as the employer does not take a “tip credit” (
i.e., paying tipped employees a direct wage below the minimum wage) and, instead, pays such workers a direct wage equal to or greater than the minimum wage. Many commenters have argued that permitting only servers to receive tips, which in many restaurants can be very lucrative, yet prohibiting the kitchen staff, who prepare the food, from receiving tips was unfair.
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The Commission periodically has filed enforcement actions against broker-dealers for failing to file SARs – suspicious activity reports typically centered on a failure to file reports regarding microcap issuers. Those actions are based on Exchange Act Section 17(a) and Rule 17a-8. SARs on the other hand trace to the Bank Secrecy Act and FinCEN.
The question of broker-dealer compliance with SARs and the Commission’s authority under the Exchange Act Section and Rule typically cited by the agency was raised in an action recently decided by the Second Circuit Court of Appeals.