New Tip Rules Effective August 5

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…

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NRA Files to Stop 80/20 Rule

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…

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Final Tip Credit Rule Becomes Effective

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…

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