On Friday, October, 29, 2021, the Department of Labor (DOL) issued a final rule regarding how to determine which tipped employees may receive a “tip credit” in lieu of receiving the full minimum wage directly from the employer. The new rule restores the “80/20” rule rescinded under President Trump, requiring employers to pay employees at least the minimum wage if they spend more than 20% of their time working on tasks that do not specifically generate tips such as wiping down tables, filling salt and pepper shakers, and rolling silverware into napkins, or duties referred to in the industry as “side work.” The rule goes into effect on December 31, 2021 and the change represents continuation of a pattern that has continued across administrations with Presidents adopting and rescinding the rule over the past three administrations.
Blog Editors
Recent Updates
- New York Enacts Amendment to Limit Frequency of Pay Damages for Manual Workers
- DOL Shelves Independent Contractor Rule
- Time Is Money: A Quick Wage and Hour Tip . . . Contractual Indemnification May Not Guard Against FLSA Claims
- California Court of Appeal Holds That Prospective Meal Waivers for Shifts Between Five and Six Hours are Enforceable
- New Jersey Supreme Court Confirms: Commissions Are Wages Under the New Jersey Wage Payment Law