New federal rules went into effect May 5 requiring restaurant employers to make sure they appropriately inform tipped employees of their tip-credit-related practices. The new regulations, the first changes to the Fair Labor Standards Act of 1938 concerning tip credits in 44 years, provide guidance on the ownership of employee tips, acceptable tip-pooling arrangements and the employer’s obligation to notify employees of their tip-credit practices. Industry watchdogs were displeased with ...

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