When you give a tip at a restaurant you may do so out of habit or you may want to reward particularly good service by wait staff. Either way you probably don’t have in mind putting money in the pockets of restaurant owners, supervisors or managers. The Trump administration proposed a regulation allowing just that. It was panned by the critics in Congress, who as part of the federal government’s most recent budget compromise made changes to tipping, but nothing that radical.
The original proposal encountered strong opposition from many working in the restaurant industry, reports the New York Times. Labor advocacy groups claimed the proposed regulation would’ve shifted billions of dollars from workers to employers.
The restaurant industry claimed it would’ve allowed the tips given to waiters and waitresses to be shared with those working in “the back of the house” such as cooks and dishwashers. There were no such limitations in the proposal, owners were free to keep or split the tips however they saw fit.