As the economy continues to shift from a culture of full-time employment to an on-demand "gig" marketplace, the landscape of workers' rights is also changing. Working as an independent contractor rather than an employee allows a worker more flexibility and autonomy in their work schedule, among other things, but that may come at the cost of losing certain benefits. It's crucial to understand how the legal rights of workers who are considered "employees" are different from those who are considered independent contractors such as consultants, short-term contract workers, and freelancers.
Sally J. Abrahamson, O&G Employment Law Blog, May 7, 2018
In late March, the Trump administration backed off from a proposal that would have effectively given restaurants and other employers the legal right to pocket workers' tips. The U.S. Department of Labor (DOL) announced the proposed rule change last December, saying it would give employers the "freedom to share tips between traditionally tipped and non-tipped workers." It would have rolled back regulations introduced in 2011 by the Obama administration that barred employers from redistributing tips to anyone other than the employees who would normally receive them.
Too often, however, tip-pooling with non-tipped workers becomes wage theft when employers use it as a way to redirect tips to themselves. In the case of the DOL proposal, managers, supervisors and even business owners would have been legally entitled to receive a portion of workers' tips.