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Is Tip Pooling Legal?
Though strictly regulated by both federal and state law, tip pooling is one aspect of the food and beverage industry which frequently comes under scrutiny by both governmental agencies and employment attorneys. Previously the US Department of Labor, Wage and Hour Division ruled that under the Fair Labor Standards Act, tip pools can legally only include those employees who “customarily and regularly receive tips.” In March, 2018, a December, 2017 proposal was signed into law mandating tipped employees who are paid the full minimum federal wage of $7.25 an hour (or the state minimum, whichever is higher,) instead of the traditional $2.13 per hour with the difference made up through hourly tips, may now be required to share those tips with non-tipped employees. This was done in order to lessen the wage difference between traditional “front of the house” employees such as servers and bartenders and “back of the house” employees including dishwashers and cooks, who, while just as important to the dining experience, may earn less.
Food and beverage business owners, managers and anyone considered to be in a supervisory position are not allowed to take part in tip pooling. While they can in fact require tipped personnel to participate in tip pooling, they themselves cannot benefit.
In today’s climate of rising food costs, additional new expenses including third-party food delivery services and a nationwide campaign to dramatically increase the federal minimum wage, some employers instead of using tip pooling to equalize pay are using it as a way to pay lower wages to their non-tipped back of the house employees. This practice, while legal as long as the hourly paid rate before tip pooling is either the federal or state minimum (whichever is higher) is seen by many as unethical and duplicit. These employers are taking the original reason behind the updated law and twisting it for their own financial gain.
Providing the greater St. Louis area with quality temporary employees for the hospitality and service industry for now over 20 years, Staffing One Services wishes each and every one of our past, present and future clients a very happy, safe and prosperous New Year!
How Food Delivery is Reshaping the F&B Industry
No longer do you have to get dressed, drive across town to your favorite cafe, find a parking spot, put your name on a waiting list and then hang out until you’re called. From restaurants specializing in fine dining to Mom & Pop establishments, nationwide fast food chains to casual cafes, the majority are now offering home or business delivery either by hiring their own drivers or using a third-party service such as Uber Eats, Grubhub or DoorDash.
The interest in food delivery is generating a new dynamic in the restaurant business. Many employment opportunities have been created to handle the order taking and packaging of these meals to leave the restaurant. Orders are generally placed one of two ways: either over the phone or online. The order is then processed as if the customer was in the restaurant, the only exception being all food items have to be boxed for take-out and then handed off to the delivery driver.
While it’s easy to assume restaurants offering delivery service are seeing a bottom line increase, unfortunately the majority say this isn’t true. Along with having to hire more staff, the cost of the actual delivery itself is causing the overall profit margin to shrink. Frequently the meal ordered for delivery is less expensive, with high profit items including beverages, generally not included. And while the demand for food delivery is increasing in volume, it is not yet high enough to offset additional labor costs.
Unless streamlined processes can quickly be implemented to reduce costs, one of two things will begin to occur. Many of your favorite restaurants and cafes will no longer offer food delivery, or worse case scenario, they will be forced to close their doors. So while the convenience is unarguably a plus, perhaps stop and think next time before ordering dinner online or by phone.
Searching for a long-term, part-time or temporary job in the St. Louis area? Call Staffing One Services today at 314.361.2444 for assistance.
Need Extra Holiday Cash?
Consider a Temporary Food & Beverage Side Hustle
The holidays are fast approaching and if you’re like the majority of us those paychecks just aren’t going to cover all the presents the kids expect to see under the tree on December 25th. Make plans now to earn some extra money for those holiday presents, the kid’s winter clothes, car or home repairs, next year’s summer vacation, or just something nice for yourself by calling Staffing One Services today.
Overall unemployment for 2018 is holding steady at just under four percent, creating a shortage of quality temporary workers for this year’s seasonal job market. That’s why each and every one of our staffing professionals work diligently to ensure just the right fit no matter if you’re in need of a temporary holiday gig, long-term part-time position or a full-time job with the potential to become permanent. From food and beverage positions including both front and back of the house to banquet and corporate holiday celebration personnel, we take the stress out of your job search.
The leader in temporary staffing solutions in and around the St. Louis area; Staffing One Services has been in business since 1996. And in a world where companies come and go, there is a reason for our longevity. At Staffing One we take the time to get to know both our clients and our job seekers. We treat each person that walks through our doors, sends us an e-mail or calls us on the telephone with respect and are truly committed to doing our best each and every time.
For additional information please contact us online, schedule an appointment by calling 314.361.2444, or stop by our conveniently located office at 5615 Pershing Ave, Suite 24 any Tuesday, Thursday or Friday from 9:30AM to 11:30AM. Remember to save some time by downloading, printing off and filling out our on-line application before coming in. Staffing One Services: let us help alleviate your holiday financial stress.
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- PO Box 300204, University City, MO 63130
- Time card pickup/drop off: 5615 Pershing Avenue, St. Louis, MO 63112
- Phone: (314) 361.2444
- Open M-F, 7:30am to 4pm
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