The Pennsylvania Attorney General has approved a 2021 proposal by the state Department of Labor and Industries (L&I) to dramatically amend the state regulations governing wage payments for tipped workers. Current law provided a monthly tipped employee threshold of $30 in tips before an employer could take the tip credit and pay the authorized tipped…
Although it seems we’ve been advising on the changes – and changes back – regarding the federal tip credit rules for quite some time, there is still news to report. Last week, along with the Texas Restaurant Association, the National Restaurant Association’s Restaurant Law Center (NRA) filed an emergency motion seeking a temporary injunction against…
Yet another change in the tipping rules as relates the Fair Labor Standards Act (FLSA) will become effective just a few days after Christmas when the newest DOL Final Rule on paying tipped employees kicks in on December 28, 2021. These latest DOL regulations resurrect the 80/20 rule, whereby an employer can only take a…
The picture is becoming increasingly clear as to the depth and breadth of the pro-worker thrust of the US Department of Labor in the Biden administration. Earlier this week, the Wage and Hour Division issued a proposed rulemaking that would scale back the circumstances under which an employer may pay a lower minimum wage to…
Almost a full year and a half ago, the US Department of Labor (DOL) officially rid the federal regulatory bureaucracy of the so-called 80/20 Rule, which governed minimum wage calculations and requirements for tipped employees when they perform ‘non-tip’ functions. Since then however, individual states have sought to adopt their own versions of the 80/20…
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…
The New Jersey Department of Labor (NJDOL) has proposed new regulations that would revise the definition of “wages” in the Garden State to exclude “tips” from an employer’s obligation relating minimum wages. Under the proposed regulations, a “tipped employee is any employee engaged in an occupation in which he or she customarily and regularly receives…
On Monday of this week, the Department of Labor (DOL) released yet another amended tip-pooling proposal. The latest iteration however, only applies to employers who do not take a tip credit. It will allow employers to pool tips from front-of-the-house workers and share them with back-of-the-house employees who aren’t normally tipped. This most recent change…
In the waning days of the 2019 legislative session, Connecticut lawmakers passed bipartisan legislation seeking to clarify state law relative to the so-called 80/20 rule. In essence, the bill would have codified what the state labor department had been advising businesses for years – that for workers with blended duties (functions for which they receive…
It’s official! The US Department of Labor last week officially amended its Field Operations Handbook relating when and for what work employers could pay workers a subminimum wage (tipped wage). The 80/20 rule, as it became known when it was implemented in 2009, provided that an employee could not be paid the lower tipped wage…
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