Alaska regulations restrict mandatory tip sharing

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JUNEAU, Alaska (AP) — The Latest on Alaska banning mandatory tip sharing (all times local):

4:15 p.m.

Alaska officials say businesses like restaurants and bars can require their wait staff to share tips with other wait staff, but not with all workers, under new regulations to go into effect Friday.

The Juneau Empire reports Alaska will prohibit businesses from requiring employees to share tips among all workers.

Lt. Gov. Byron Mallott signed the new regulations to ban mandatory tip pooling.

Employees will still be able to voluntarily share tips, but the regulations forbid employers from forcing the action among all employees.

In a public comment submitted to the state earlier this year, the Economic Policy Institute estimated that Alaska employers would take about $14.4 million in tips each year from employees. According to tax records, Alaska workers make $40.1 million in tips each year.

The new regulations do not affect existing state laws that require employees to be paid at least minimum wage without tips calculated into that pay.

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11:30 p.m.

Alaska will prohibit businesses from requiring employees to share tips among other workers.

The Juneau Empire reports Lt. Gov. Byron Mallott signed new regulations that go into effect Friday to ban mandatory tip pooling.

Employees will still be able to voluntarily share tips, but the regulations forbid employers from forcing the action.

In a public comment submitted to the state earlier this year, the Economic Policy Institute estimated that Alaska employers would take about $14.4 million in tips each year from employees. According to tax records, Alaska workers make $40.1 million in tips each year.

The new regulations do not affect existing state laws that require employees to be paid at least minimum wage without tips calculated into that pay.



 
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