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Paul Courtnell
  • Hospitality Law
  • Don’t Drown In Your “Tip Pool": Complying With Minimum Wage Laws For Tipped Employees
  • Some hoteliers have expanded the use of “tip pools” which, if done properly, can provide hotels with a federally sanctioned way to reduce payroll expenses and provide job security for more of their employees. However, federal law is very strict regarding the type of employees for which a “tip credit” may be taken and what’s required for an employer to operate a qualified tip pool. While tip pools and tip credits can help reduce labor costs for hoteliers, they should not be adopted without careful consideration of the rules and without the assistance of qualified employment counsel.

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