Labor Department proposal could allow employers to keep workers’ tips

Published



The Labor Department proposed new rules Monday that may potentially allow an employer to keep tips given to its workers, provided it pays all of them at least the federal minimum wage, currently $7.25 an hour.

The department argues the current rules do not give enough flexibility to set workplace pay rates. It nevertheless also seeks “additional guidance” to prevent employers from using this change to undercut the minimum wage law.

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