Among the most prevalent wage & hour issues in the concept of tip pooling – where employees eligible for tips have all their tip money collected and then distributed – based on factors such as hours worked, time off, etc.
Tip pooling can go horribly wrong (Starbucks was recently ordered to pay $100 million) or it can go well for employers.
Recently, the Wynn Hotel & Casino won a Nevada Supreme Court decision. Wynn made significant changes to their tip pooling program in 2006 (a year after the resort opened) – because supervisors were making less than dealers. The dealers sued, but in an affirmation of an employers’ ability to make policy changes with at-will employees (Wynn is not a union shop) – the Supreme Court said the dealers could not pursue their lawsuit.
An excellent summary is from our friends at Jackson Lewis.