29 CFR 531.55 - Examples of amounts not received as tips.

§ 531.55 Examples of amounts not received as tips.

(a) A compulsory charge for service, such as 15 percent of the amount of the bill, imposed on a customer by an employer's establishment, is not a tip and, even if distributed by the employer to its employees, cannot be counted as a tip received in applying the provisions of section 3(m) and 3(t). Similarly, where negotiations between a hotel and a customer for banquet facilities include amounts for distribution to employees of the hotel, the amounts so distributed are not counted as tips received.

(b) As stated above, service charges and other similar sums which become part of the employer's gross receipts are not tips for the purposes of the Act. Where such sums are distributed by the employer to its employees, however, they may be used in their entirety to satisfy the monetary requirements of the Act.

[ 76 FR 18856, Apr. 5, 2011]

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

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United States Code
U.S. Code: Title 29 - LABOR
Statutes at Large
Public Laws

Title 29 published on 05-May-2017 03:24

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 29 CFR Part 531 after this date.

  • 2012-06-29; vol. 77 # 126 - Friday, June 29, 2012
    1. 77 FR 38717 - Updating Regulations Issued Under the Fair Labor Standards Act
      GPO FDSys XML | Text
      DEPARTMENT OF LABOR, Wage and Hour Division
      29 CFR Parts 531 and 553