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 The new rule restores the “80/20” rule rescinded under President Trump, requiring employers to pay employees at least the minimum wage if they spend more than 20% of their time working on tasks that do not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
- Epstein Becker Green’s Free Wage-Hour App Includes Updates on New 2025 Laws
- Time Is Money: A Quick Wage-Hour Tip on … DOL Confirms Managers Are Blocked from Tip Pool Even When Working in Non-Supervisory Capacity
- Employers in California: Don’t Forget That “Joint Employers” Are Not Vicariously Liable for Each Other’s Conduct
- Many State and Local Minimum Wages Increased on January 1, 2025
- California Court of Appeal Holds That Every PAGA Action Necessarily Includes an Individual PAGA Claim – and Plaintiffs With Arbitration Agreements Must Arbitrate Their Individual Claims First