Complete Story
05/20/2014
Legislation to Prohibit Tip Sharing
Updates:
Testimony by Rep. Antonio was given during a Commerce, Labor and Technology Committee meeting June 4, 2014. Click on Rep. Antonio's name above to read the testimony.
The Legislative Services Commission recently reported, "Ohio law is silent with respect to tip pooling. Thus, it appears that Ohio employers can require the practice, although an Ohio employer subject to the Federal Labor Standards Act (FLSA) would have to comply with the FLSA's requirements for tip pooling."
About the Issue:
HB 534 proposes to prohibit employers from requiring employees to participate in tip sharing. Sponsored by Rep. Nickie Antonio, D-Lakewood, this bill was introduced earlier this week. The Ohio Restaurant Association has already come out against the bill, stating that U.S. Department of Labor already has approved tip sharing and set regulations that much be followed through several laws, including the Fair Labor Standards Act.
The bill proposes that employers are not permitted to require employees to participate in a tip pool; however, it does allow for employees to voluntarily enter into an agreement to divide gratuities among themselves. It also still permits an employer to provide safekeeping of a tip pool that is voluntary, as long as the account is separate and open for employee inspection.
The bill proposes that employers who unknowingly violate the law and require pooling will have to pay employees the full amount of tips if the tip pool didn't exist, less any amount actually paid, as well as reasonable attorney fees and costs of any action taken against them. If an employer violates the law and knows the law against mandatory tip pooling exists, the employer must pay double the difference between the amount the employee would have received in tips, absent the tip pol and the amount actually paid, as well as the costs and reasonable attorney fees allowed by the court.
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