The operator of several Lansing, MI, area restaurants has been convicted of operating an illegal tip pool scheme. Real and punitive damages amount to over $800,000
The 2020 rule that allows tip pooling, for the benefit of workers who do not normally receive tips. The rule requires the tipped people to make at least the Federal minimum wage. As best as I can tell, the perp was paying the sub-minimum tipped wage, claiming the tip credit, and skimming the tips to pay the cooks, rather than paying the cooks full wage from his own pocket.
Can’t help but wonder if the promises to make tips and OT pay tax free have something to do with this.
Steve