(September 20, 2022) In 2020 and 2021, the U.S Department of Labor made updates to the Wages and Fair Labor Standards Act of 2009, which prevented managers and company owners from receiving employee tips. This seemingly minor change had a big impact on family-owned small businesses in Texas this year. In April of this year, a Dallas-based and operated barbeque chain was ordered to return nearly 900,000 USD to employees in tips that had been illegally distributed to managers via the company’s tip pooling practices. Then yesterday, on September 19, 2022, the Department of Labor recovered nearly 230,000 USD of withheld wages from Black’s BBQ for the exact same reason. Both restaurants claim to have not known about the change in the law and immediately complied with the order. Small businesses can sometimes misunderstand the law, so it’s important that you know the law if you receive tips.
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