States Codifying 80/20 Rule

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…

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Democrat AGs Look To Restore 80/20 Rule

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…

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New Jersey Proposes New Wage Definition for Tips

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…

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Yet, Another DOL Tip Pooling Rule

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…

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Connecticut Looks for Compromise on 80/20 Rule

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…

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DOL Finalizes ‘80/20’ Rule Switch

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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DOL Dumps 80/20 Rule

The undoing of the Obama legacy continued last week when the U.S. Department of Labor (DOL) rescinded the so-called 80/20 rule. The 80/20 rule, technically created when the department rescinded the prior rule back in 2009, established a threshold of 20% for determining whether a tipped employee could be paid the lower tipped wage for…

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