The Department of Industrial Relations, Division of Labor Standards Enforcement ("DLSE") publishes a web site which contains a variety of useful and accurate information for California employers and employees.  However, blind faith in the information published on this site may prove imprudent and costly to California employers.

The DLSE is permitted to interpret California law and regulations and they do so frequently.  In our experience, the interpretation by the DLSE typically favors the employee to the detriment of the employer.  Fortunately, the DLSE's interpretation is not binding on California courts.

Misinformation published by the DLSE recently came to the attention of the attorneys at NB.  On its web site, the DLSE publishes several FAQ pages.  One page regarding tip pooling at restaurants states that tips may be shared by servers, busboys and bartenders, but not by kitchen staff such as chefs and dishwashers.  DLSE's response to this FAQ is simply wrong.  Multiple California Courts of Appeal have ruled to the contrary.  Specifically, the courts have ruled that, except managers and owners, anyone (including kitchen staff) may share in tip pools so long as they are in the chain of service (Ehteridge v. Reins (2009) 172 Cal.App.4th 908) or provide indirect table service (Budrow v. Dave & Busters (2009) 171 Cal.App.4th 875).

Thus, employers should not necessarily rely solely on the DLSE's interpretation of the law.  Instead, employers should make informed decisions only after consulting with an experienced lawyer.   The attorneys at NB have been helping California employers navigate complex labor laws for over a decade.