Earlier this week while attending an excellent CFA Forum and Lobby Day in Washington DC, we learned that the Department of Labor sent a revised rule on tip pooling to the White House Office of Management and Budget for approval. OMB must approve new regulations before they are published in the Federal Register. The proposed change, which will not be made public for some time, will likely rescind 2011 regulations that prohibit employers from redistributing tips to non-tipped employees, even if cased where the tipped workers already receive full minimum wage. The Fair Labor Standards Act (FLSA) provides that only employees who “customarily and regularly receive tips” may participate in a tip pool. An array of business groups have argued the current rules prevent “back of the house” employees from participating in tip pools.