Taking from your employees' tip pool? It's illegal

It’s Dry January, and brewery owners are feeling the pinch. You might be tempted to supplement your income by dipping into your employees’ tip pool. That would be a huge mistake. It isn’t just bad form to take your employees’ hard-earned tips. It’s also illegal.

Under the FLSA, owners, managers, and supervisors are strictly forbidden from taking any part of pooled tips. There are no excuses.

Is Trump coming after Title VII next?

"Dad, did Trump just get rid of workplace discrimination laws?" That's the question my daughter asked me yesterday.

She was referring to his Executive Order entitled, Ending Illegal Discrimination and Restoring Merit Based Opportunity.

To answer Norah's question, no, that EO did not get rid of workplace discrimination laws. Instead, it dismantled federal Diversity, Equity, and Inclusion programs and placed all federal DEI employees on unpaid leave. It also rescinded Executive Order 11246, originally signed by President Lyndon Johnson in 1965, which prohibited federal contractors from discriminating based on race, color, religion, sex, or national origin, and further removing their affirmative action obligations in that regard.

WIRTW #744: the 'London Calling … the podcast' edition

In the latest episode of The Norah and Dad Show, we recap our family Christmas holiday to London. Here are links to everything we mention in the episode. 

• Hux Hotel
• Peter Pan Cup
• The Beatles Magical Mystery Walking Tour
• Third Man Records
• Arsenal Tickets
• Afternoon Tea at the Goring
• Atticus Blue (Leicester Square busker)
  
• Hawksmoor Seven Dials
• The Original Ted Lasso Tour
• Reale Camiceria (the "unofficial" Ted Lasso store)
• The Prince's Head Pub
• Camden Market 
  

You'll find the episode on Apple Podcasts, Spotify, YouTube, Amazon Music, Overcast, the web, and anywhere else you get your podcasts. 

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Here's what I read this week that you should read, too.

Neurodivergence is not an excuse for racism

"He's on the spectrum" is not an excuse for racism.

I've seen more than one person attempt to justify Elon Musk's Nazi salute, or dismiss it, citing his Asperger's syndrome, a form of autism spectrum disorder.

I call 🐂💩!

Bigotry, racism, and antisemitism are not symptoms of Asperger's or autism. They are, however, hallmarks of being a bigot, racist, or antisemite.

A lesson on ADA compliance

What happens when an employer fails to take an employee's disability seriously? It might look a lot like the case of Sutherland v. Peterson's Oil Service.

This recent First Circuit decision offers a crash course on the perils of ignoring an employee's requests for accommodations—and the consequences of getting it wrong.

WIRTW #743: the 'snowball at Santa' edition

If your employee is caught in a viral video calling an opposing fan the "c-word" at a football game, should he lose his job? Does it make a difference if your company is in the business of DEI consulting?

This story just played out following the Eagles playoff win over the Packers last weekend.

Ryan Caldwell, an employee at BCT Partners—a firm specializing in DEI—was captured on video during the game directing the vulgar and misogynistic insults toward a female Packers fan. The video quickly went viral to the tune of more than 31 million views. The public backlash was significant and swift.

The Eagles organization responded by banning Caldwell from their stadium for life. BCT Partners conducted an internal investigation and terminated Caldwell's employment, stating that his behavior was "vile, disgusting, unacceptable, and horrific," and stood in direct opposition to the company's core values of respect, dignity, and inclusion. Caldwell then issued a public apology, but added that the video "does not reflect the full context of what transpired," and that his actions "were not without provocation."

This incident serves as a stark reminder of the importance of aligning employees' behavior with a company's values, both on and off the clock. By proactively addressing these issues in real time, employers can mitigate risks, uphold their reputations, and foster a positive workplace culture that reflects their mission and values.

Three more points to make:

1. This is not a free speech issue. Private-sector employees have zero free speech rights in the workplace in this context. Regardless, freedom of speech does not equal freedom from consequences.

2. It is irrelevant whether this employee works for a DEI firm or any other company. His behavior was abhorrent, could damage the company's reputation, and is grounds for termination. The identity of his employer is just the ironic icing on the cake.

3. The employee's apology rings quite hollow. I don't care about the "context" of what happened or how he was "provoked." If you respond to provocation by calling a woman that awful word, that's who you are, period. And I certainly don't want you working for me.

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Here's what I read this week that you should read, too.

SCOTUS eases burden of proof for employers in FLSA exemptions cases

Big news for employers: The Supreme Court just made it easier to defend against Fair Labor Standards Act exemption claims by employees.

In E.M.D. Sales v. Carrera, the Court unanimously ruled that employers only need to meet the preponderance of the evidence standard—not the heightened clear-and-convincing standard—when proving that an employee is exempt from the FLSA's overtime requirements.