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September 26, 2022

Dive Brief:

Dive Insight:

In its announcement, the DOL warned others in the food service industry: “Employers in the food service industry need to know that tips are the property of tipped employees who earn them , plain and simple,” said DOL Wage and Hour Division (WHD) District Director Nicole Sellers. in a statement.

Sellers added that WHD is committed to safeguarding the rights of food service workers, and DOL highlighted that last year, it collected nearly $35 million in back wages for those in the industry. In addition to employers retaining worker tips, the DOL said it commonly finds violations related to unpaid pre- and post-shift work and improperly paid overtime hours.

That enforcement can only grow if the field sees the great growth that the Bureau of Labor Statistics of the United States predicted. But compliance with federal law can help employers avoid such enforcement and can help in the war for talent, the DOL said: “Employers who ensure that their workers are paid wages and their legitimate benefits will be in the best position to retain and recruit skilled workers.”