The U.S. Department of Labor (DOL) published a new rule on tip pooling last Friday that subject employers to more significant monetary penalties for mishandling workers’ tips. Under the previous DOL regulation, put in place during the Trump administration, an employer could be subjected to civil penalties if the employer’s action of mishandling or illegally keeping a worker’s tips was “repeated or willful.” Now, however, the DOL is once again empowered to levy fines and penalties (up to $1,100 per violation) against employers regardless of the circumstances of their withholding or keeping a worker’s tips. Interestingly, the change, although it was not unexpected, comes in the wake of a report being released by One Fair Wage that alleges that as many as 35 percent of tipped employees experienced wage theft within the past year at a cost of $8 billion! Furthermore, the new regulation also clarifies that although manager and supervisors who earn tips may contribute to a tip-pooling arrangement, they are prohibited from receiving tips from those tip pools. Published in the Federal Register on Friday, the new rule will become effective on November 23, 2021.