In this country, there are thousands of employees who earn their living off tips or gratuities they receive from customers. Over the last several years, there has been a movement afoot, particularly in the restaurant industry, to eliminate tipping from the workplace. Most recently, Joe’s Crab Shack became the first major restaurant chain to test a “no-tipping” policy at more than a dozen of its locations. Servers, hosts, and bartenders at test locations of Joe’s Crab Shack are now being paid a higher, fixed, hourly wage well above the current federal minimum wage of $7.25 per hour. Joe’s Crab Shack is not the only restaurant experimenting with no-tipping policies. Union Square Hospitality Group announced earlier this year that 13 of its New York City restaurants will go to a no-tipping policy. “No-tipping” restaurants are still far from the norm in the United States but it is definitely a trend to watch.
Home > Federal Law Articles > FLSA > Industries and Occupations > A Legal Tipping Point β Are No-Tip Policies the Wave of the Future?