Despite the fact that the U.S. Department of Labor has been grappling with the broad issue of compensation rules for tipped employees for several years and seemingly finalized its changes last February, the issue continue to rear its head. Just a few weeks ago, the democrat attorneys general of 18 states and the District of Columbia raised issues challenging DOL’s new interpretation and have threatened court action. The DOL amended the 80/20 rule in 2018 to provide that an employer could use a tip credit if a tipped employee’s work involved non-tip functions contemporaneously without regard to a specific percentage breakdown of tip function versus non-tipped function. In a letter to Labor Secretary Eugene Scalia, the 19 AGs argue that the new rule which replaced the 80/20 rule is a violation of the Administrative Procedures Act and hence is illegal. The AGs also allege that DOL is aiming to “relieve employers of an oppressive administrative burden without providing any evidence that such a burden exists.” More to come!