--- title: DOL Proposes Changes to Tip Credit description: DOL proposed rule would amend the tip credit under the Fair Labor Standards Act. image: https://www.americanpayroll.org/images/default-source/default-album/oct-17-2019-apa-web-images_federal.png?sfvrsn=6eacaac4_0 --- [![soc-fb](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_fb.svg "soc-fb")](https://www.facebook.com/American-Payroll-Associations-Chapter-Relations-877434285724525/) [![soc-in](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_li.svg "soc-in")](http://www.linkedin.com/groups?about=&gid=1051077&trk=anet_ug_grppro) [![soc-tw](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_tw.svg "soc-tw")](https://twitter.com/APAChapters?lang=en) - [Home](https://blogs.payroll.org/chapter-leaders) - [About](https://blogs.payroll.org/about) - [Connect](https://blogs.payroll.org/connect) - [Resources](https://blogs.payroll.org/resources) ![23-PayNewsNow-Horiz-Logo](https://blogs.payroll.org/hs-fs/hubfs/23-PayNewsNow-Horiz-Logo.png?width=1300&name=23-PayNewsNow-Horiz-Logo.png "23-PayNewsNow-Horiz-Logo") [![26 PayrollOrg®RGB-NoTag long](https://blogs.payroll.org/hs-fs/hubfs/26%20PayrollOrg%C2%AERGB-NoTag%20long.jpg?width=1300&name=26%20PayrollOrg%C2%AERGB-NoTag%20long.jpg "26 PayrollOrg®RGB-NoTag long")](https://payroll.org/) ![](https://blogs.payroll.org/hs-fs/hubfs/PayrollOrg_Swirl.jpg?width=35&name=PayrollOrg_Swirl.jpg) Custom URL No Widget: By [PayrollOrg Staff](https://blogs.payroll.org/pay-news-now/author/apa-staff) on Oct 17, 2019 12:23:02 PM # DOL Proposes Changes to Tip Credit The U.S. Department of Labor (DOL) has announced a proposed rule to amend the tip credit under the Fair Labor Standards Act (FLSA) \[[84 F.R. 53956, 10-8-19](https://www.govinfo.gov/content/pkg/FR-2019-10-08/pdf/2019-20868.pdf)\]. The proposed rule would implement provisions of the Consolidated Appropriations Act, 2018 and codify existing Wage and Hour Division guidance into the FLSA \[[DOL, 19-1800-NAT, 10-7-19](https://www.dol.gov/newsroom/releases/whd/whd20191007)\]. ### Proposed Changes The proposed rule would: - Explicitly prohibit employers, managers, and supervisors from keeping tips received by employees. - Allow employers that do not take a tip credit to establish a tip pool to be shared between workers who receive tips and are paid the full minimum wage and employees who do not traditionally receive tips. - Not impact regulations providing that employers that take a tip credit may only have a tip pool among traditionally tipped employees. - Update 29 C.F.R. §531.56(e) on dual jobs to reflect changes the DOL made in a [Field Assistance Bulletin](https://www.dol.gov/whd/FieldBulletins/fab2019_2.pdf) issued in February. - Add a new civil penalty (up to $1,100, plus an equal amount in liquidated damages) that may be imposed when employers unlawfully keep tips. ### Additional Resources For more information, the DOL has a [webpage](https://www.dol.gov/WHD/flsa/tipcreditnprm.htm) on the proposed rule, a [fact sheet](https://www.dol.gov/WHD/flsa/TipsFactSheet.pdf), and [FAQs](https://www.dol.gov/WHD/flsa/tipsFAQ.htm). To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out [Payroll Source Plus](https://ebiz.americanpayroll.org/ebusiness/ProductCatalog/Product.aspx?ID=6067)!   Jyme Mariani, Esq., is Managing Editor of *Payroll Currently* and Payroll Information Resources for the APA. ### Search ![payroll-logo-white](https://blogs.payroll.org/hs-fs/hubfs/payroll-logo-white.png?width=200&name=payroll-logo-white.png "payroll-logo-white") [Privacy Policy](http://www.americanpayroll.org/privacy/)     |     Acceptable Use ©[PayrollOrg](http://payroll.org) [![soc-fb](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_fb.svg "soc-fb")](https://www.facebook.com/PayrollOrg) [![soc-in](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_li.svg "soc-in")](https://www.linkedin.com/company/payroll-org/mycompany/) [![Twitter-X-White-Logo-PNG](https://blogs.payroll.org/hs-fs/hubfs/Twitter-X-White-Logo-PNG.png?width=20&height=19&name=Twitter-X-White-Logo-PNG.png)](https://twitter.com/PayNews)