Connecticut Rules Would Block Restaurant Owners from Collecting Tips

A Connecticut rule already on the books would be the main stopgap from a Federal Department of Labor (DOL) rule from taking effect in the state.

The DOL is considering allowing restaurant owners to collect the tips left for servers, and the owners would then be the ones to decide how those tips are used.

Sen. Richard Blumenthal urged the labor department not to approve the rule during a press conference Monday.

"This rule is unjust, unfair, economically unwise," Blumenthal said during the event at the Ion Restaurant in downtown Middletown.

Connecticut labor rules, however, will blunt the impact of the proposed rule change in Washington.

Connecticut restauranteurs benefit from the "tip credit" rule. The tip credit allows owners to pay servers and staff less than minimum wage so long as their hourly wages exceed Connecticut’s minimum wage of $10.10.

There are 27 states with that provision on the books and others that maintain the same minimum wage for food service employees as for other hourly workers.

Matt Banta is a server at Ion and he says the arrangement with tips works for servers but also fears for what the publicity of such a rule might do to customers.

"I think if this goes through then general customers will tip less not knowing where the tips are going," Banta said.

The Connecticut Restaurant Association told NBC Connecticut that the tip credit rule would supersede whatever action is taken in Washington.

Banta says customers expect a certain level of service, and in turn, expect their gratuities to go to the right person or people.

"If they tip the server, they’re paying for the service, the interaction, the friendliness," Banta said. "Some pool tips now in a way they give a portion to the host, or they give a portion to bussers and food runners and what not. That’s different than giving all of the money to the owner as he sees fit."

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