DOL Proposes Rule on Tip Regulations under FLSA

SBA Advocacy Roundtable Teleconference on Department of Labor’s Proposed Rule on Tip Regulations Under the Fair Labor Standards Act

Thursday, December 14, 2017, 3 p.m.- 4 p.m. EST

The Office of Advocacy of the Small Business Administration invites you to a Small Business Roundtable to discuss the Department of Labor’s Proposed Rule on Tip Regulations.  Comments on this proposed rule were due on January 4, 2018.   DOL has now extended the comment period for this rule by 30 days.  The meeting will only be held via teleconference; in-person attendance is not an option for this meeting.   This call will not be recorded.

·        To participate by teleconference, register at this link:
You will receive an e-mail with the dial-in numbers and a personalized access code.

Final Agenda

  1. Welcome and Introduction to the Office of Advocacy  (3:00 p.m. – 3:10 p.m.)
    Major Clark, Acting Chief Counsel, SBA Office of Advocacy
    Janis Reyes, Assistant Chief Counsel, SBA Office of Advocacy
  2. DOL’s Briefing on the Tip Regulations  (3:10 p.m. – 3:25 p.m.)
    Lyda Ghanbari and Jessica Larkin, Policy Advisors, Office of the Assistant Secretary for Policy, DOL
    Monty Navarro, Analyst, Wage and Hour Division, DOL 

    Representatives from the Department of Labor (DOL) have been invited to provide a brief description of this Proposed Rule, and answer audience questions.  DOL cannot comment or opine about matters outside the contents of the proposed rule.
    While the audience can voice concerns or offer suggestions, they need to be formally submitted to the rulemaking record to be officially considered by DOL.
  3. Small Business Feedback/ Discussion on Proposed Rule (3:25 p.m.-4:00 p.m.)
    Advocacy needs feedback and data from small businesses on how this rule would impact you.
    Does your business have tipped employees? Do you pay them the full minimum wage or utilize a tip credit, and how would this rule change your pay and tip-sharing practices?
    Will there be costs to read and understand the rule, adjustment costs for management, or other compliance costs?Background:  On December 5, 2017, the Wage and Hour Division of the Department of Labor (DOL) proposed a rule to rescind the parts of its tip regulation that bars tip-sharing arrangements in establishments where the employers pay full Federal minimum wage and do not take a tip credit against their minimum wage obligations.  This rule reverses a 2011 DOL regulation that created this restriction. Under this rule, employers paying a full minimum wage to employees could require these workers to share their tips with other employees, including employees who do not customarily receive tips.  These “back of the house” employees include restaurant cooks, dishwashers and other traditionally lower-wage classifications. Comments on this proposed rule are due on January 4, 2018.  DOL has now extended the comment period for this rule by 30 days.

Roundtable meetings are open to all interested persons, with the exception of the press, in order to facilitate an open and frank discussion about small business-related issues.   Agendas and presentations are available to all, including the press.  Anyone who would like to receive roundtable agendas or presentations, or be included in the regular distribution, should forward such requests to sends e-mail).   The purpose of these roundtable meetings is to exchange opinions, facts, and information and to obtain the attendees’ individual views and opinions regarding small business concerns.  The meetings are not intended to communicate or achieve any consensus positions of the attendees. Please note that this meeting will not be recorded. 

Date: Tuesday, December 5, 2017