Overview

• On September 30, 2025, the Wage and Hour Division concluded in FLSA2025-03 that front-of-house oyster shuckers may share in traditional tip pools when a tip credit is taken.
• The agency cited customer-facing duties such as describing oyster offerings, making suggestions, answering questions, and preparing oysters in view of patrons, while noting kitchen shuckers without direct customer contact do not qualify as tipped employees.
• Under the FLSA, traditional tip pools tied to a tip credit must be limited to employees who customarily and regularly receive tips, whereas employers that do not take a tip credit may use broader pools under federal law subject to stricter state limits.
• In a separate opinion, the DOL found a hotel restaurant and an affiliated members club to be joint employers for overtime, requiring combined hours based on shared ownership, proximity, a common kitchen and menus, periodic shared supervision, and cross-assignment of staff.
• The letters apply only to the facts presented yet serve as compliance guides that can be cited as persuasive authority, prompting hospitality employers to reassess tip-credit practices, tip pools, and joint-employer exposure.