States Targeting Tip Credit Rules

Potentially significant changes are on tap for the tip credit rules in a number of jurisdictions around the country. Pennsylvania has already adopted a significant change that will quadruple the tip income requirement necessary for an employer to use the tip credit. Currently, the Pennsylvania minimum wage law requires employers paying the tipped minimum ($2.83…

Read More »

An Update on Minimum Wages

Legislation has been approved by the Hawaiian Senate – and a slightly different version was given preliminary approval in the House – both of which will kick up the minimum wage in the Aloha State to $18/hour over the next few years. Currently, the state minimum is $10.10 per hour, but that will change rather…

Read More »

Attacking the Tip Credit

Massachusetts lawmakers are now considering legislation that would phase out the state tipped minimum wage and mandate one uniform minimum wage by 2028. Under the legislation filed by Representative Tricia Farley-Bouvier (Pittsfield), the current tipped worker wage of $5.55 (and slated to rise to $6.75 by 2023) would be phased out as the tipped wage…

Read More »

OMB Completes Review of DOL Tip Rule

Last week, the White House Office of Management and Budget (OMB) completed its review of a new proposed DOL Tipping Regulation under the Fair Labor Standards Act (FLSA) – the last step in the review process before a new regulation is published in the Federal Register. The regulation will tighten the rules that govern how…

Read More »

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…

Read More »

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…

Read More »

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…

Read More »

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…

Read More »

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…

Read More »

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…

Read More »