Earlier this year, amid then-Republican presidential candidate Donald Trump’s campaign promise to end taxes on tips in the U.S., the U.K. government introduced a new law to ensure that all tips are paid in full to staff, regardless of whether they were given in cash or by credit card.  

The message is clear: tips have become a political issue and compliance managers need to ensure their processes reflect changing rules. 

One important issue for U.S. compliance managers is that cultural attitudes to tips vary widely in different jurisdictions. In the U.K., for example, new rules including the Employment (Allocation of Tips) Act and statutory Code of Practice on Fair and Transparent Distribution of Tips came into force in October. Any employee in the U.K. who now discovers that tips have not been fully passed on by their employer can take their case to Tribunal. Penalties could include fines or compensation to staff.