The U.S. Department of Labor (DOL) has issued its long-awaited Final Rule addressing who may share tips under the Fair Labor Standards Act (FLSA) and the circumstances under which employers may use a tip credit. It will become effective on March 1, 2021, 60 days after publication in the Federal Register. The Final Rule implements a 2018 amendment to the FLSA that permits tipped employees to pool tips with non-tipped workers so long as the employer does not take a “tip credit” and, instead, pays such workers a direct wage equal to or greater than the minimum wage. The Final Rule will permit both groups to receive tips, so long as the employer does not take a tip credit and further, underscores that employers, including managers and supervisors, are prohibited from keeping any tips received by employees, regardless of whether the employer takes a tip credit. It also defines those who qualify as a “supervisor” or “manager,” and therefore are excluded from participating in a tip pool, by reference to the FLSA’s “duties” test for the executive exemption. With variances in state laws, this expansion of tip pooling may not apply in all states.