In a surprising decision that may require many restaurants and other hospitality businesses in the Western U.S. to alter their labor practices, the 9th U.S. Circuit Court of Appeals upheld a 2011 U.S. Department of Labor rule that prohibits businesses from requiring employees to share their tips even if the tipped employees are paid minimum wage.
The decision applies to all businesses operating in the 9th Circuit, which includes the states of California, Nevada, Washington, Arizona, Oregon, Idaho, Montana, Hawaii, and Alaska.
