By Sahid Fawaz

A federal appellate court has upheld a Department of Labor ruling forbidding restaurants from collecting tips given to employees and then redistributing them to non-tipped employees.

The Chicago Tribune reports:

"Businesses cannot collect tips given to waiters, casino dealers or other service employees to share with support staff such as dishwashers even if the tipped employees are receiving minimum wage, a federal appeals court ruled Tuesday.

The 2-1 decision by the 9th U.S. Circuit Court of Appeals upheld a 2011 U.S. Labor Department rule.

The 9th Circuit said the rule was reasonable and consistent with Congress' goal of ensuring tips stay with employees who receive them.

The court overturned district courts in Nevada and Oregon. The 9th Circuit ruling would largely apply to states that require workers to get the state minimum wage on top of any tips. Seven states fall into that category, according to the labor department's Wage and Hour Division: Alaska, California, Minnesota, Montana, Nevada, Oregon and Washington.

It was not immediately clear what the impact would be on back-end workers in those states.

The Labor Department has previously banned employers who use tips to fulfill their hourly minimum wage requirements from distributing those tips to employees who don't regularly receive tips."

We think this is a welcomed ruling as employers need to take responsibility for paying workers a fair, living wage rather than using one group of employees to pay another.

For the full article, check out the Chicago Tribune piece here.

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0 #4 Catherine 2016-02-29 20:55
As a line cook who regularly sees the wait staff rake in a couple of hundred a day in tips on food that we bust our asses to make on minimum wage, this is bullshit. what education do you need to be a waiter? We have to spend thousands on culinary school, and thousands on a good set of knives. The tip out is the only thing that keeps me from being homeless. Let the servers cook the food if they want all the tips from it...
0 #3 Rick Terminesi 2016-02-27 07:08
My family and I owned a restaurant for over sixty years we would had never done or thought of doing that to our employees nor would we except them to put up with it or work for any one doing this to people I would not go to a business that does this nor would I associate with any owners that would try this strong arm practice people there are to many other restaurants out there to put up with this
0 #2 Robert Grace 2016-02-25 19:27
It's funny how politics understands the needs of low wage earners to the point of regulating how crumbs will be divided up! For shame, if they keep it up, they too will drown when money has no worth.
0 #1 John 2016-02-25 16:03
I've turned down jobs that required you to tip out the bartender the busboy the dishwasher the cooks and hostesses ,plus you had to go through two weeks of training on the floor for the minimum wage. and only after waiting on the owner and the head chef Maybe you get the job.. I told the lady interviewing me that I've been a fine dinning server for 35 years take pride in my craft. I should not have to pay the employees that work there. I passed on the 3rd time they wanted to interview me..I hope this is true!!!!

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