On January 14, 2025, the U.S. Department of Labor (DOL) issued Opinion Letter FLSA2025-1 pertaining to managers’ participation in a tip pool at a “quick service restaurant.” In the letter, the DOL reiterates its position, which was published in a final rule in September 2021, that managers and supervisors cannot keep tips unless they “solely and directly” provide service to customers, regardless of whether or not a tip credit is taken.
The opinion letter responded to two questions from the quick service restaurant. The first question focused on whether the assistant team lead and the team leaders, whom the quick service restaurant deemed were supervisors or managers under 203(m)(2)(B) of the Fair Labor Standards Act (FLSA), can receive tips when they work a shift in a nonmanagerial or nonsupervisory role.
Without analyzing the functions of the assistant team lead and team leaders, the DOL explained in the opinion letter that the regulations define a manager or supervisor who may not keep tips as one...
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