Employers are ineligible to participate in tip pools
The FLSA defines an employer as “any person acting directly or indirectly in the interest of an employer in relation to an employee.” Though a low-level supervisor is not an “employer” under the FLSA, an employee with substantial managerial authority over the day-to-day operations of a business is the functional equivalent of the employer. If a manager functions as the employer in this regard, any tip sharing with that individual violates the FLSA. Courts ...
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