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Category: Wage and Hour

A new Labor Department opinion letter confirms that restaurants may include front-of-house oyster shuckers in traditional tip pools with servers. The opinion letter concludes that front-of-house oyster shuckers, who interact with customers but don’t directly receive tips, may be included in a traditional tip pool with servers for whom the employer takes a tip credit.

The Fair Labor Standards Act permits employers to take a tip credit for a portion of the minimum wage for employees in occupations that customarily receive tips. An employer can require an employee for whom it takes a tip credit to contribute tips to a tip pool if the pool is limited to employees that customarily receive tips.

Noting that the front-of-house oyster shuckers regularly engaged with customers by sharing recommendations and answering questions, DOL likened their role to that of sushi chefs or sommeliers, whose customer-facing duties qualify as tip-generating. Notably, the oyster shuckers working in the kitchen, who had little customer interaction, were not included.

The Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, is offering a course on Fundamentals of Wage and Hour Compliance. CWC members can read more here.

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