Pay the minimum or more? Broad tip pools OK

The FLSA has complicated rules for employers that pay less than the minimum wage to staff who receive tips. If tips aren’t large enough, then the employer has to top off the wages so the employee makes at least minimum wage. But what happens if the employer pays the customarily tipped employee minimum wage or more right from the start? That’s the question the 9th Circuit Court of Appeals recently answered for the first time.