The Case for Tipping and Unrestricted Tip-Pooling: Promoting Intrafirm Cooperation

Authors

Samuel Estreicher, New York University School of LawFollow
Jonathan R. Nash, Emory University School of LawFollow

Author ORCID Identifier

Jonathan Nash 0000-0001-5816-6896

Document Type

Article

Publication Date

2018

Keywords

Tipping, Tip-pooling arrangements, Wages, Restaurants, Cooperation, Fair Labor Standards Act, Waitstaff

Abstract

This Article proceeds as follows. Part I presents doctrinal background. It discusses the laws governing tip-pooling, with an emphasis on relevant federal and state laws. Part II analyzes, from a law-and-economics perspective, how tip-pooling arrangements—both voluntary and mandatory—might arise, and what form they might take. Part III shows how governing law limits the ability of restaurateurs to put tip-pooling arrangements in place, and shapes the incentives of employees. It also analyzes the response of restaurants like the Union Square Hospitality Group that have barred all tipping. Part IV suggests revisions to existing law that would free up management’s freedom to utilize tip-pooling.

First Page

1

Publication Title

Boston College Law Review

Comments

© 2018, Samuel Estreicher & Jonathan Remy Nash. All rights reserved.

Recommended Citation

Samuel Estreicher & Jonathan Remy Nash, The Case for Tipping and Unrestricted Tip-Pooling: Promoting Intrafirm Cooperation, 59 B.C. L. Rev. 1 (2018).