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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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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Idaho Minimum Wage Question Ok’d for Ballot

The Idaho Secretary of State has given his approval to an initiative amending the current state minimum wage law and establishing a four-year formula to increase the wage and subsequently tie it to the federal consumer price index (CPI) for specific items. Under the proposal, the current minimum wage of $7.25 would be increased annually…

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Off-again, On-again, Off-again

Initiative 77, the Washington DC ballot question that raised the minimum wage and eliminated the tipped wage back in June is still in the news – but seemingly not still in play. Recall that voters handily approved the measure by a 56-44% margin earlier this year, but recognizing the negative impact that the mandate would…

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The undoing of the Obama legacy continued last week when the U.S. Department of Labor (DOL) rescinded the so-called 80/20 rule. The 80/20 rule, technically created when the department rescinded the prior rule back in 2009, established a threshold of 20% for determining whether a tipped employee could be paid the lower tipped wage for…

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DC Council, Congress Look to Stop Initiative 77

Politics does indeed make strange bedfellows, and the effort to undo the voters’ approval of Initiative 77 in the Nation’s Capital is a prime example. Recall that just three weeks ago by a 56-44% margin, District of Columbia voters approved a ballot question that would eliminate the tip credit by which restaurants pay tipped workers…

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Industry Sues over Tipped Wage Regulation

Speaking of the tipped wage and tip credits, the restaurant industry has filed a federal lawsuit against the Department of Labor challenging to the Obama-era regulation implementing the so-called 80-20 standard for tipped work and prohibiting the tip credit. The lawsuit was filed with the US District Court for Western Texas in Austin by the…

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DC Voters Eliminate Tipped Wage

The fight continues, but the first round goes to proponents of expanding the minimum wage in the Nation’s Capital as DC voters this week passed Initiative 77. The voter petition eliminates the tipped wage (currently $3.33) within the District of Columbia and by 2026 ramps up tipped employee wages to the District minimum. Currently the…

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Ballot Initiative Battles

Efforts to implement more progressive policies as relates employment laws issues has shifted over the past several years to the ballot initiative process – and with a fair amount of success unfortunately. That trend appears to be continuing in a couple of recent examples. Recent polls indicate that a ballot initiative in Massachusetts that would…

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